Buying A Business -- A Due Diligence Checklist

Due Diligence is the last phase in the buying process. This is the time when you will have access to all of the company's books, records and files. You will have a pre-determined due diligence period in which to investigate the information that you have been given so far to ensure that it 's true and accurate.

The goal of an effective due diligence is to validate what the seller has represented and to allow you adequate time to review all of the other key issues of the business. The following is a checklist of information and documents that a buyer may wish to review during the due diligence period.

• Organization and Good Standing
• Accounting and Financial Information
• Physical Assets
• Real Estate
• Intellectual Property
• Employees and Benefits
• Licenses and Permits
• Environmental Issues
• Reports, Studies, Appraisals
• Taxes
• Contracts and Agreements
• Product or Service Lines
• Customer Information
• Litigation
• Insurance Coverage
• Vendors, Suppliers, & Professional Service Providers
• Marketing and PR Campaigns