David C Barnett Small Business and Deal Making M&A SMB What is due diligence and how to do it
Mar 15, 2023
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Due Diligence Basics
- Do due diligence by validating all seller-provided information through third-party data and inquiries.
- Examine customers, employees, suppliers, and market risks thoroughly before buying a business.
Nexus Card Due Diligence Example
- David Barnett shared his Nexus card application as a due diligence example.
- He showed how government verifies personal info via multiple third-party sources before final approval.
Importance of Industry Knowledge
- Industry knowledge is crucial to identify hidden risks in due diligence.
- Without it, buyers might miss key issues like customer concentration controlled by few intermediaries.