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Archive for 'Due Diligence' Category

Good Faith Deposit / Beware of Broker Trust Accounts

By Hoke - Last updated: Friday, January 3, 2014

A Good Faith deposit is often required to accompany the offer. The amount is typically 10% to 20% of the sale price. Because it is impossible to really really know if the sellers claims are valid without solid verification, most reputable business brokers will hold the Good Faith Deposit uncashed until Due Diligence is successfully […]

What is Due Diligence?

By Hoke - Last updated: Monday, September 3, 2012

Due Diligence part of the sale process when the seller opens all aspects of the business to the buyer. In essence this is where the seller must convince the buyer that the business performs and is as represented. This convincing is done mostly via providing historical documentation and buyer observation. The buyer has an opportunity […]

Financial Due Diligence Checklist

By Hoke - Last updated: Saturday, September 1, 2012

This typical list is complete and detailed. Many smaller businesses may not have available this depth of detail. Bank Statements for the for past three years Cash Receipts Journals for the for past three years General ledgers for the for past three years Cash disbursement journals/check registers for the for past three years Copies of […]