Business Brokers Can Help with Due Diligence

Most business brokers would use a simple definition of "due diligence" to mean the process through which a potential buyer evaluates a target company or business for the purpose of acquisition.

The process is similar to a forensic analysis. According to many business brokers, relevant areas of concern can include financial reports, the business's place in the market, real and personal property, insurance and liability coverage, review of debt, employee benefits, immigration and international transactions.

Business brokers can be instrumental in the process of due diligence. According to the U.S. Securities Act of 1933, business brokers must conduct a due diligence investigation for the businesses they are selling and disclose their discoveries in order to not be held liable for non-disclosure. Due diligence is now performed by business brokers for public, as well as private mergers and acquisitions.

Business brokers say that due diligence should be performed before a company goes to market. This helps to uncover any hidden or unexpected costs that may be associated with the sale of the business, ensuring that the seller is receiving a fair sum from the buyer. The best advice is to employ the help of a qualified business broker. Protecting the seller is a business broker's job, and properly performing due diligence is one of the most important steps to take when selling your company.