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Business Acquisition Due Diligence Checklist
A comprehensive guide to uncovering potential issues before finalizing your business acquisition.
Why Due Diligence Matters
Due diligence is the process of thoroughly investigating a business before completing an acquisition. It helps buyers verify information provided by sellers, identify risks, and make informed decisions. Proper due diligence can prevent costly surprises and provide leverage in negotiations.
Financial Due Diligence
Financial Statements
- 3-5 years of income statements, balance sheets, and cash flow statements
- Year-to-date financials compared to previous years
- Tax returns for the past 3-5 years
Revenue and Sales
- Customer concentration analysis (% of revenue from top clients)
- Sales by product/service line
- Seasonality patterns
Legal Due Diligence
Corporate Structure and Governance
- Articles of incorporation and bylaws
- Corporate minutes and resolutions
- Ownership structure and capitalization table
Need expert assistance with due diligence?
Seventh Economy's M&A advisors can guide you through the due diligence process to ensure you uncover all critical information before closing your business acquisition.
Contact Our Due Diligence Specialists