What is due diligence and what’s involved?

So you're thinking of selling your business and you've probably heard the term "due diligence" or "DD" mentioned, but might not be 100% sure what it entails.
When selling your business, the buyer will examine everything in minute detail to identify gaps and assess any risks they might face upon taking ownership. This involves a due diligence questionnaire (DDQ) covering topics like client contracts, supplier contracts, employment contracts, disputes, accounts, financial information, branding, trademarks, and more.
The buyer or their solicitor will go through this with a fine-tooth comb, asking questions and requesting documentation. Being sale-ready means having everything organised and ready to share, making the process smoother for you.
While due diligence is ongoing, the legal documentation process will run alongside it. Any risks identified will be addressed in the legal documents to ensure the buyer is not overly exposed to liability.
If you're thinking of selling your business and need support with due diligence, drop me a message or comment below this video. Our team can chat with you about the process and how we can assist you.