What is due diligence when selling a business?

Due diligence is the period during which a qualified buyer carefully evaluates the business before completing the purchase. Depending on the transaction, this may include reviewing financial records, operations, customer information, leases, equipment, inventory, contracts, licenses, and other aspects of the business.

Due diligence benefits both parties by helping ensure that expectations are aligned before closing.

Well-organized records and thoughtful preparation often contribute to a more efficient due diligence process.