Tip #47: Sellers must prepare their business for due diligence!

business records“Due Diligence” or the “Right of Inspection” gives the buyer the full rights to inspect all items in a business — financials, equipment, inventory, premises and anything else. And if the buyer finds any material discrepancies, he or she usually has the legal option of backing out. Some transactions fall apart during due diligence, only because the sellers have ignored fixing the problems of their business and just hope for the best.