Due Diligence is one of the most critical stages in the process of purchasing a business. Some buyers incorrectly assume that due diligence means simply performing a financial review, but in actuality it encompasses significantly more and can be a lengthy and sometimes complex process. Proper due diligence entails a thorough investigation into the intimate details of the business being purchased in order to identify its strengths, weaknesses, growth opportunities, threats and strategic assets. Facts must be validated, assumptions eliminated, and risks mitigated.
Due Diligence: How to Avoid Surprises When Acquiring a Manufacturing Company