Why is due diligence so important?
Here it is, an amazing opportunity to buy a business (or its assets) or company! The deal looks great and, of course, when all is said and done, the business will be yours! However, is the deal really that great? And, will the business really be yours? These are just a couple of questions that should be running through your mind when thinking about buying a business. But how do you know if this is a good deal? What can you do to determine if this purchase will be good for you? This is where due diligence comes in. Due diligence is the period before an official offer is placed by the buyer and is usually limited to a certain amount of time.
Due diligence gives the buyer the opportunity to inspect the business and obtain information from relevant parties such as the accountant, key employees, vendors, etc. Usually, sellers will request a non-disclosure agreement along with a letter of intent (or memorandum of understanding) before allowing any due diligence period to commence. On occasion, sellers may even require a deposit to show legitimate interest in purchasing the company. Once the due diligence period is complete, a buyer will either make a formal offer or decline to pursue the offer.
Benefits of having an attorney during your acquisition
- Attorneys are knowledgeable regarding the law.
- Can analyze the merger or acquisition to determine the proper course of action.
- Can negotiate with opposing side as needed.
How long does it take to have custom Business Acquisitions?
Approximately 1-2 business days*
*Depending on Specifications
Why our firm to assist in your Business Acquisitions?
At SG Law Group, we assist our clients in the due diligence process and provide counsel as needed with respect to the information obtained during the due diligence period. Contact us to see how we can help you!
Hire an affordable, professional Attorney to properly acquire a business Today!