What sellers often miss
Many owners view due diligence as something the buyer does to them. In reality, diligence is an extension of the preparation process that should begin long before buyers enter the picture. The best sellers are often conducting their own diligence months or years before going to market.
The takeaway
You cannot prevent buyers from asking difficult questions, nor should you want to. The goal is to be prepared for those questions before they are asked. Every issue addressed in advance is one less opportunity for a buyer to lose confidence, reduce value, or request concessions. The smoother the diligence process, the greater the likelihood of reaching a successful closing on the terms originally negotiated.
Illustrative, not your deal. Where the book uses dollar figures, they are there to show how something works, not to describe your business. Your banker, your accountant, and your attorney will put real numbers to your own situation. Full note.
Terms this chapter uses
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