Buyer due diligence
When a sale has been agreed and the ‘heads of terms’ have been drawn up by Ventura Business Brokers your buyers will want to carry out a due diligence exercise.
Due diligence is the final stage in the buying process. As a guide, below is a non exhaustive list of the areas that a buyer may want to look at before signing contracts.
The level of due diligence will, of course depend on the size and structure of the deal and the type of business being sold.
Company Information
- Company registration documents
- Articles of association
- Directors details
- Shareholder details
- Share option schemes
- Board meeting minutes
Products and services
- Product range
- New product development
- Trade marks and patents
Technology
- Technology used
- Hardware
- Software and licences
- E-commerce
Marketing
- Pricing policy
- Advertising and promotion
- Distribution channels
- Customer base and spread
- Market share by product
Business Plans
- Current business plan
- Future plans
- Previous business plans
Financial Information
- Historical profit and loss statements
- Historical balance sheets
- Cash flow information
- Year to date management accounts
- Customer Invoices
- Supplier Invoices
- Sales forecasts
- TAX and VAT information
- Aged debtors and creditors
- Payment terms
- Credit control policy
- Stock level
- Obsolete stock
Legal
- Supplier contracts
- Customer contracts
- Staff contracts
- Leases and hire purchase agreements
- Loan agreements
Relationships with key suppliers
- Supplier details
- Payment terms
Relationships with key customers
- Customer details
- Payment terms
Capital Expenditure
- Historical capital spend
- Capital expenditure projections and priorities
Property Information
- Description
- Valuation
- Leases
Insurance
- Public liability policy
- Employee liability policy
- Property Insurance
- Other policies
Competition
- Key competitors
- Competitive analysis
- Current competitor activity
Management and staffing
- Organisation chart
- CV's of key personnel
- Salaries
- Benefits in kind (cars, healthcare etc)
- Profit share and bonus arrangements
- Trade union activity
- Collective agreements
- Pension Plans
Assets
- Asset list
- Age of equipment
- Replacement value
Litigation
- Current litigation
- Past litigation
- Pending or possible litigation
If you are thinking about selling, please click here and complete our Seller Registration form.
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