If you are planning on selling or buying a business you are advised to undertake due diligence to protect you against unknown liabilities.
As a buyer due diligence will review all the financial records plus anything else deemed material to the sale. As a seller, due diligence provides analysis on the buyer, what is their ability to purchase for example.
Many business deals collapse very late in the day because of unacceptable terms or onerous conditions being placed on the vendor at the last moment prior to signing contracts. Due diligence protects you against warranties and indemnities being placed on you that you would rather not have.
By going through a process of due diligence it ensures that what you think you are paying for is what you are going to get and for the vendor, that you are not going to unexpectedly find the gains you thought you had made have just been allocated to the tax man!
If you are thinking of selling or buying a business and would like some independent advice, please contact us and book in for our free initial consultation