Avoid Surprises in Due Diligence
Avoid Unwanted Surprises in Due Diligence April 12, 2017 by Michael Shea PA (Edit) Avoid Unwanted Surprises During Due Diligence Buyer of Businesses often uncover unwanted surprises during due diligence — resulting in downward purchase price negotiations, lower valuation multiples, lenders getting scared off, or the deal falling through. In today’s economic climate, potential buyers are willing to search long and hard to identify the best acquisition candidate. Transparent financial and operating information is more important than ever. For companies anticipating sale, sell-side due diligence can identify and quantify issues and exposures that could negatively impact a deal. How Sell-Side Due Diligence Helps Sellers According to a recent survey commissioned by BKD, 66% of closely held/family-owned businesses anticipate a change in ownership in the next 10 years. For would-be sellers looking to maximize value, it is prudent to begin preparing now. Sell-side due dil