BusinessSold guide · 10 minute read
A buyer’s due diligence checklist
The commercial, financial, operational and legal questions to answer before committing to an acquisition.
01
Commercial position
Understand why customers buy, how leads are generated, the strength of competitors and whether revenue depends on a small number of relationships. Reconcile management claims with contracts and trading evidence.
02
Financial performance
Review statutory accounts, management accounts, tax filings, bank evidence, debtor and creditor ageing, stock records and cash conversion. Investigate unusual adjustments and movements between periods.
03
People and operations
Map the roles required to keep the business running, including work currently performed by the owner. Review employment terms, contractors, premises, equipment, systems, licences and supplier dependencies.
04
Legal and regulatory matters
Ask advisers to review company records, ownership, material contracts, disputes, intellectual property, data protection, insurance and sector-specific permissions. Confirm exactly which assets and liabilities transfer.
05
Deal and transition planning
Agree the structure, working-capital expectations, conditions, warranties and completion mechanics. Build a practical handover plan covering customers, staff, systems, authorisations and the seller’s continuing support.