Lucido Global Business Brokers

Lucido Global Business Brokers

Adding Value, Creating Wealth

  • Home
  • About Us
    • About Us
    • Suite of Services
    • Our Team
  • Buying a Business
    • Buying a Business
    • Buying a Business Tutorial
  • Selling a Business
    • Selling a Business
    • Selling a Business Tutorial
  • Visas & Immigration
  • Businesses For Sale
    • Featured Businesses
    • Florida Businesses
  • Blog
  • Contact Us

Is Your Deal Really Done?

By Sam Mohlenhoff Jan 29

Once you get to the stage of your deal where you have a signed letter of intent, you may already be feeling a sense of relief that your deal is near finalization. But remember that the due diligence stage is typically yet to come. This stage includes everything from financial and legal investigations to a review of specific information regarding how a business is run. 

The due diligence process can be quite comprehensive and it often reveals some surprises. Because it is important for sellers to know what to prepare and for buyers to know what to look for, let’s examine some of the categories that are reviewed during this process.

Trademarks and Copyrights

Will assets like trademarks, patents and copyrights be transferred?  This is a point that has certainly interfered with some deals being successful. Due to the fact that trademarks, patents, and copyrights are often essential parts of a business, they cannot be overlooked. 

Products and Industry 

Due diligence will likely include analysis of product lines and the respective percentage of sales that they make up. If the business in question is a manufacturing business, then all aspects of the process will be examined. For example, buyers will be looking for age and value of the equipment, information about suppliers, etc. 

Financial Statements

It goes without saying that financial statements should be poured over during due diligence. Current statements and incoming sales should be carefully reviewed.  Review of financial information will also include balance sheets. Is there bad debt? Is there work in progress? These kinds of issues will be evaluated. 

Customer Lists

If you are selling a business, you should be prepared to share lists of major customers. Buyers may also want to compare your market share to that of your competitors. 

Key Employees

Buyers should be looking for information on key personnel, as well as data on any potential employee turnover. If you are selling a business, it’s important to try to fix any staffing problems that might interfere with a buyer’s ability to properly run the business. 

A key goal of the due diligence process is to find potential problems, such as liabilities and contractual issues. But on the upside, due diligence also includes investigation into assets and benefits. The end result should be that the selling price of the business is justified and both parties walk away satisfied. As stated above, it is very common for problems and issues to pop up during due diligence, so it’s important to stay proactive and be open to negotiation until the deal is finalized.

Copyright: Business Brokerage Press, Inc.

ismagilov/BigStock.com

The post Is Your Deal Really Done? appeared first on Deal Studio – Automate, accelerate and elevate your deal making.

Categories: Buyer Articles, Seller Articles

Prev
Next

Featured Businesses

Subscribe to our Newsletter

No worries, your information is safe with us. We hate spam too!

From Our Blog

Cultivating Your Brand Strategy

May 27, 2023

Your brand is a customer’s perception about your business. It determines how they feel about the … Read More »

An Overview of Term Sheets

May 19, 2023

If you’re planning on a business agreement to buy or sell a business, you’ll want to know about term … Read More »

Is Your Deal Really Going to be Successful?

April 29, 2023

If you’re selling your business and things are looking positive with your buyer, you might be … Read More »

When Should Sellers Proceed with Caution?

April 22, 2023

Selling your business is typically quite an involved process that takes a series of months. Sellers … Read More »

How Improved Negotiation Tactics Can Benefit Your Deals

April 15, 2023

There is no underestimating the importance of negotiation when you are buying or selling a business. … Read More »

How Leases Factor into Business Sales

April 1, 2023

If you’re planning to buy or sell a business that involves a lease, this can lead to an extra level … Read More »

Global Business Brokers

Contact Us

Lucido Global Business Brokers
Keller Williams Coral Gables
550 Biltmore Way PH II A-B
Coral Gables, FL 33134
Office (305) 662-7325
Direct (954) 913-5464
rod@globalbusinessbrokers.net

Adding Value, Creating Wealth

  • Cultivating Your Brand Strategy
  • An Overview of Term Sheets
  • Is Your Deal Really Going to be Successful?
  • When Should Sellers Proceed with Caution?
  • How Improved Negotiation Tactics Can Benefit Your Deals

Join Our Team

Copyright © 2023 Lucido Global Business Brokers
MENU
  • Home
  • About Us
    • About Us
    • Suite of Services
    • Our Team
  • Buying a Business
    • Buying a Business
    • Buying a Business Tutorial
  • Selling a Business
    • Selling a Business
    • Selling a Business Tutorial
  • Visas & Immigration
  • Businesses For Sale
    • Featured Businesses
    • Florida Businesses
  • Blog
  • Contact Us