We like to provide potential buyers with a due diligence checklist even when we represent the seller in an acquisition. If you don’t, many times a CPA or trusted business advisor of a buyer will present you something like if you were to buy a Wall St.-type business. This is not what we need. We need something that works for main street. So we provide our buyers with due diligence checklists and often this makes them feel comfortable with making the acquisition or actually going through with the deal. Mergers and acquisitions can be tough not only on sellers, but on buyers as well. They have to arrange financing and go through due diligence themselves, so that they feel comfortable with what they are purchasing.
A due diligence checklist is an important part of a small business opportunity. Many times, even as the representative for the seller, we like to provide due diligence checklist. Why is this? If it makes the buyer feel better about the transaction and make it go more smoothly, it is worth it to provide it. This may cause extra work on the seller’s part, but it tends to make the buyers more comfortable about the seller’s intentions, as well.