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A checklist for sellers on a Buyer
Diligence processes differ from buyer to buyer, and some buyers are better at it than others. We suggest asking the following questions to get a sense of a buyer's history, expectations, approach, organizational skills, roles, and likelihood of close.
Buyer Profile:
Capital sources:
Amount of capital:
Capital terms:
Team size:
Names/Roles:
Expected resources (operations team, etc.):
Of the last ten letters of intent you signed, how many resulted in a closed transaction?
Of those that failed in due diligence, what were the causes?
On average, how long do most of your due diligence periods last?
May I talk with one intermediary and one owner who have gone through due diligence with you?
What roles do you accounting firm and law firm play in the process?
How is work divided amongst you and your team?
What would have to happen for you to pull the plug on the acquisition?
How would you describe your pace of due diligence?
What's your average turnaround time on reviewing documents?
How often are you planning to be on site and what type of work do you typically do when on site?
What will be asked of my team and who specifically would you like included in due diligence?