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.

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What our clients are saying...

“It is a privilege to write a letter of recommendation on behalf of Business Transition Strategies. …As with any family business, negotiations need to be handled delicately and, as with any sale, both parties need to be satisfied with the end result. Quite frankly, without their help, this could not have been achieved. John Howe and Ken Schaefer skillfully analyzed the books and were able to bridge the gap between the sellers’ belief of what the company was worth and its actual worth. Their style is objective, straightforward, thorough and kind in the delivery of their assessment. After the sale was achieved to both parties’ satisfaction, John and Ken were hired to help with the adjustment of the acquisition and the financial health of the company moving forward. I can highly recommend this talented group of experienced business advisors to any company in need of clear and thoughtful company planning and adjustments.”

- Jane Longden

Decora