Seller’s Due Diligence:
The CABB (California Association of Business Brokers) Purchase Agreement has provisions for both Buyer and Seller Due Diligence. Due Diligence is a Contingency for both Buyer and Seller.
Buyer Due Diligence involves the buyers review of the company’s financial records, equipment, inventory, etc. It is a comprehensive review of your company’s operations and financials and a critical stage of the transaction process.
Seller Due Diligence usually involves a review of the Buyer’s financial wherewithal, credit score, bank pre-approval, and resume or bio.