Three years of clean accounts: where due diligence starts
Buyers and their advisers will go through your numbers line by line. Here is what they look for.
Due diligence usually starts with the accounts. The aim is to understand what the business really earns, and whether that will continue.
What gets questioned
Personal costs run through the business, one-off items, unusual swings in margin and unexplained balances all invite questions. Each one slows the process and can chip away at the price.
Getting ready
Work with your accountant to separate personal and business costs, explain one-off items as they happen, and produce monthly management accounts you would be happy for a buyer to read.