Due Diligence

Due diligence is the process in which the buyer and the buyer’s advisors verify everything they have been given during the sales process, verify the quality of the assets involved, and look for any unpleasant surprises.

Buyers need to obtain information required by the financing source and often ask for information to get a head start on forward-looking planning and budgeting.

This can be a daunting process.

To relieve the pressure on the selling company, we assist in preparing a data room beforehand that usually covers 90% of the documents and reporting required. This keeps things moving.

In most transactions, the due diligence process moves smoothly.

The most common issue is inventory.

Inventory items that have not had activity for twelve months, or is orphaned, is the most common area for concerns.

Owners who consider this before going to market will be a step ahead and reduce potential conflict.

What our clients are saying...

“Regarding our working relationship with Business Transition Strategies. After 32 years of continuous growth we hit 2009 & 2010 and like many companies we went flat and in 2010 had our first loss. At this point we knew we had to make changes if we where to succeed in this new economic environment. Business Transition Strategies (BTS), particularly John Howe and Ken Schaefer, were brought on as consultants. The BTS team came in, evaluated everything in a professional and thankfully non-threatening manner. They interacted with all employees and our professional partners. Once this was done they presented their findings to the executive group and gave very specific suggestions for improvements. This done and a plan in place, John & Ken continued to help us move forward and implement changes and make adjustments where needed. I am happy to say we are back to being a growing and profitable business and I believe BTS played a big part in making this happen. I would recommend to anyone that they include BTS as part of their business plans for the future.”

- Christina

Advisory Client