When you are
buying a business checking the books is important but having the non-financial
due diligence is as much important. The main reason is to see if the business you
are buying is going to be the same after the transition. You want to see if
there is any danger coming from:
- major customers
to take their business elsewhere because they were loyal to the selling owner.
-Is there
danger coming from key employees leaving right after the sale, again loyal to
the previous owner?
-Existing contracts
with vendors and customers!
-Are the
contracts will continue to be honored .
-Market
participants?!
-Barriers of
entrance to the market.
-Territorial
Exclusivity?!
-Also
sustainability of the company after the sale.
-Is it going
to continue profitability or will dip.
All these
factors cannot be overlooked from the new owner during the due diligence for a smooth
transition.
To speak with a professional call Ivan DealMaker at 813-215-6801 or visit www.ivandealmaker.com
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