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