Due Diligence Preparation

Due Diligence is often considered one of the most comprehensive appraisals of a business typically undertaken by a prospective buyer, especially to establish its assets and liabilities and evaluate its commercial potential. What is not often appreciated by those that have not already experienced the Due Diligence process, is that the process is never used by a potential buyer as a basis for increasing the value of a business — quite the opposite. Due Diligence is often used to justify the decrease in the valuation of a business. Thus, in order to have a successful Due Diligence evaluation of your company, it is critical to analyze your business under the microscope of due diligence long before the actual due diligence begins in order to address any shortcomings or inconsistencies in the business and correct them.