Due diligence is the process of verifying a seller's claims about their business to ensure you are making a sound investment. It typically takes and involves a deep dive into financial, legal, and operational records. 1. Financial Health & Taxes
This is often the most critical phase. You must verify that reported profits align with actual cash flow. Due Diligence Checklist - Buying a Business - BizBuySell buying a small business due diligence checklist