When It’s Time to Sell. . .

With proper planning and management, the due diligence process need not be disruptive. Much of the work can be done off-site, and confidentiality can be maintained.

Apfelberg—Due diligence is an exhaustive set of questions posed to the seller that allows the buyer to learn about the most critical information and determine whether there are any major issues that could hinder the deal. Categories of items that are requested include corporate records, customer lists, margins/pricing, employee data, tax records, and industry studies. The seller will compile documents that are responsive to the request and provide it to the buyer and its attorneys. Unless the seller is receiving stock in the buyer as consideration for the deal, they typically do little due diligence on the buyer.