Investigating a business

The term used to investigate a business is due diligence and due diligence in this context is the process through which a purchaser evaluates a target business.

What matters are considered under the due diligence process?

Much will depend upon the nature of the target business and the market/ industry that it operates in. Key areas that are common across businesses include the following:

  • Accounting/ Tax
  • Legal/ regulatory requirements
  • Human Resources- HR/ Employees
  • Customers/ Clients
  • Industry/ Sector/ Market
  • Property
  • Political, Economic, Social, and Technological factors

To undertake effective due diligence advice must be sought from professional people with a range of skill sets e.g. lawyers, accountants, business advisors, marketing consultants, financers etc.

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