Selling your business – What the heck is due diligence (Legal Road Map® Podcast S3E58)

Selling your business – What the heck is due diligence (Legal Road Map® Podcast S3E58)

Due diligence might possibly be the two most boring words in legal jargon.  In plain English, this is the process where a potential buyer or investor evaluates a business to decide if a deal makes sense.

This step is essential when you’re looking to buy, sell, or invite investment into your business.

In this episode, I talk about what to expect during due diligence, and how you can prepare:

  • Who pays for due diligence? (and why you might want to consider a good faith deposit during negotiations)
  • The important reasons you should use an NDA - nondisclosure or confidentiality agreement
  • The different types of documents you’ll be asked to provide
  • Why you might be required to produce your tax returns or bank statements and other financial records
  • Why you need to make sure that contracts with your key business relationships are in order
  • How protecting your intellectual property now could mean a bigger profit if you decide to sell down the road

Key takeaway: Not having your legal house in order can kill a buy/sell or investment deal in an instant. Preparing for due diligence with a trusted attorney and tax advisor can help ensure a successful transaction or agreement.

If you need an NDA (nondisclosure / confidentiality) agreement like the one mentioned in this episode, be sure to check out our contract template store:  Our templates are fully customizable by you and available for immediate download!

Additional Resources: 

Sign up below to get a free 5 Minute Intellectual Property Audit. You’ll learn how you can make more money from the copyrights and trademarks in your business (you can also sign up there to be the first to know when new episodes are live and receive other legal updates and special offers from the AWB Firm).

This podcast is information, not legal advice specific to your situation.

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