DUE DILIGENCE
The main goal of due diligence is for you, as a prospective Buyer, to confirm business financials, customers, contracts, and any other pertinent information to prevent any costly post-transaction surprises. Due diligence allows you to verify perceptions surrounding the value of a business, determine an appropriate offer price and subsequently structure an appealing transaction.
The process is much like hiring a home inspector prior to purchasing a house to avoid unwanted surprises. Failing to conduct appropriate due diligence can mean ending up with unexpected financial shortfalls or facing an excessively costly acquisition.
Once you have confirmed to your liking that the business you wish to buy is what it appears to be, the next step is to begin instructing your lawyer to draft up the definitive purchase and sale agreement. This process takes a fair deal of time to complete and by initiating the process sooner rather than later, you will be able to address any hurdles that may come up without potentially jeopardizing the entire deal.
The following is a non-comprehensive list of categories you may wish to review as part of your due diligence:
- Corporate Information: Licenses, agreements, organizational charts.
- Operations: Contracts, business software, sales analysis.
- Financials: Statements, projections, tax returns.
- Sales and Marketing: Product/service lists, customer analysis, advertising initiatives.
- HR: Employee agreements, benefit plans, safety manuals.
Omnium’s proprietary Opportunity Management System has been designed to make the due diligence process as efficient as possible. With our highly secure Dataroom, Qualified Buyers are able to easily access information along with supporting documentation to ensure the business meets your specific acquisition requirements.