July 25th, 2018.

The primary purpose of doing your due diligence when buying a business is to ensure there are no unexpected problems or unforeseen liabilities.

Though due diligence exists to protect the buyer, the process must be thoroughly understood by both parties.

As a seller, you will then be ready for a buyer’s questions. As a buyer, you will know what to ask and what information you can expect to receive, so you will be more likely to notice if anything questionable should arise.

Preparing to sell a business
As a seller, your preparations must begin the moment you start to entertain the idea of selling your business.

Essentially, this means you must be mentally prepared and actively begin positioning and configuring your business ready for sale some years ahead.

Completing your own thorough, consistent and honest audit of your business in good time will set a positive climate when you’re ready to sell. This will then help you to avoid a stream of suspicious questions from potential buyers.

Always think carefully before making drastic changes to your business at this time. What you may see as small, harmless adaptations made for good reason could be easily misconstrued at sale time.

Once the time arrives to list your business for sale and invite bids from prospective buyers, there are several things you must consider:

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