The misconception of many buyers

Alek B. (his real name was changed to preserve the confidentiality of the client) found the business of his dreams after a difficult and long search. And as it seemed to him, he successfully negotiated the upcoming purchase of a construction company. Now he had to do the audit of the company he was buying.

Confident that the broker was conducting the due diligence process, Alek was shocked when it became clear that the broker wouldn`t do a proper examination.

Alek looked out the window and nervously fiddled with the contract in his hands. Questions swirled and repeated in his head: “What should I do next? “How can I get out of this situation? Should I refuse to buy the option I liked and possibly the only one suitable for all the criteria at the moment or not?”

If Aleksey had read the article "Business Buyer and Business Broker", he would have known what role a broker plays in the process of acquiring a company.

The problem with people like Alek is that they don`t prepare at all for the upcoming purchase of a business: they don`t study classes, don’t read books.

If Alek had prepared himself, he might have learned the following:

  1. The broker knows how to conduct an audit, but cannot do it due to a conflict of interests.
  2. The buyer can attract professionals who can check certain areas of the business. However, a high-quality audit of a business implies a very broad approach to this issue, and one person cannot independently cover all aspects of such an audit (for example, an accountant must check the financial statements of taxes, a lawyer - statutory documents for the company, the content and legal purity of contracts, a separate specialist - tangible assets at the time of sale).
  3. The final decision on the results of the due diligence is made only by the buyer. The last word is always with him.

You can learn about the realities of the business audit process in our article.

So:

  1. Don`t ignore or postpone the Business Review CLASS for the last day. Our CLASS will give you a real idea of ​​what and how to check, and how, in general, to correctly go through this important stage on the path to purchase.
  2. If you don`t feel confident enough to independently check the acquired business, you need to enlist the support of professionals. It is better to hold negotiations in advance, as soon as you start looking for a business, because specialists in their field always have a tight schedule, and they may be busy when you conduct an audit. Read more about the audit schedule here.
  3. Negotiations should include a clear definition of objectives.
  • For example, it is necessary to establish whether the acquired business is profitable. The accountant will only say by what standards tax accounting is conducted if you don`t set the correct task for him.
  • The second important point is that you need to find out if there will be claims from the previous business owners. A lawyer can overwhelm you with adjustments to the wording of contracts, but not clearly state the main issue.

You can learn more about how a business audit should be conducted in our class.

What is important to know about the due diligence process:

Кто проверяет бизнес 3

  • The business is checked by the buyer (with the help of assistants).
  • Preparation for the audit should begin with finding (before entering into negotiations) consultants who will help you.
  • A clear statement of the task will save you from surprises when consultants, along with the invoice for services, give you a report that doesn`t contain a single word of information that interests you.
  • To lead consultants well, you need to have a good understanding of this process.

Read What Our Clients Say (Google Reviews)

  • Absolutely thrilled with my experience at Florida Buy and Sell and especially working with Alyona! She was professional, courteous, and incredibly knowledgeable, making my business buying transaction smooth and hassle-free. Their expertise and dedication to customer satisfaction really stand out in the industry. Highly recommend for anyone looking to buy or sell business with confidence. A true gem in Florida’s market!
  • I enjoyed working with Alyona Safonova as a business broker, and I cannot recommend her highly enough! Alyona is a true professional with a deep understanding of the market and a talent for finding the perfect match for her clients. She guided me through the entire process with expertise and patience, always available to answer my questions and address my concerns. Her dedication and hard work resulted in a successful sale that exceeded my expectations. If you're looking for a knowledgeable, reliable, and results-driven business broker, look no further than Alyona Safonova! 💼👍
  • I've been dealing with Florida Buy and Sell in my professional capacity as an immigration attorney assisting foreign individuals in buying businesses in the U.S. I can attest to the high degree of diligence displayed by Florida Buy and Sell in all business transactions I witnessed. My primary point of contact, broker Alyona Safonova, has always been responsive to my clients' inquiries and meticulously collected all financial documents necessary for the effective transaction.