Due Diligence as a Business Owner
Most business owners hire a business broker Encinitas for assistance with due diligence. Due diligence is an aspect of the business sale process. It can also be used as an informative tool for the business owner. As a business owner getting ready to sell, taking a look at your company from the perspective of a buyer is a great way to help improve your business before selling it. Due diligence can actually help add value to the current business operations.
At So-Cal Business Brokers, we take due diligence very seriously and ensure no stone goes unturned. Whether you want to learn more about your business or are simply getting ready to sell it, we are here to offer the support that you need.
Due diligence covers many areas such as reviewing your business finances, organization & legal structure, legal items, and management & employees. In our years in the business, we have addressed these areas and our business brokers Encinitas are fully equipped to offer the most comprehensive report in due diligence. Whether you want to review your business’ industry & competition or information systems, we are here for you. Here are some of the ways we help.
Financial due diligence
Our objective here is to review the status of your finances in the last three years. We look at annual and monthly financial statements, tax returns, income statements and balance sheets. We also compile detailed documentation of your expenses. Does your business have a bad debt history? We will let you know and give you advice on how to change that.
General organizational and legal due diligence
How your business has been structured can determine how fast it sells. The first question we answer here is this; how is the ownership structure of the business? We will also check if your business has patents or trademarks. Do you have any contracts with significant strategic partners? This is the information buyers will dig up when considering your business. We can help better organize your business so that it is more attractive to potential buyers.
Management and employee due diligence
The turnover employee history matters a lot to a future investor or business buyer. We will review your employee turnover history, ensure you have an employee handbook with well-documented policies with policies and also create organizational charts for the business.
Legal due diligence
Has your business been threatened with or had any legal actions taken against it? We will dig up this information and if the answer is yes, we will give recommendations on the way forward. It is also with legal due diligence that we check if you have proper licensing as well as approvals from local or state government to conduct business.
Are you a business buyer or a business owner that wants to learn more about his business? Give us a call today for thorough due diligence services.