"No documents, no dinero—Javier’s golden rule for business buying."

Why Due Diligence is Your Best Friend When Buying a Business

Meet Javier, an ambitious entrepreneur from Madrid, who decided to dive into the business world by buying a metal products company. He wasn’t just winging it; Javier had taken business buying classes and felt ready to conquer the corporate jungle.

Javier came prepared, with a checklist in hand for the due diligence process. But little did he know, his biggest challenge wouldn’t be financial spreadsheets or market analysis, but rather a wily old saleswoman who could have moonlighted as a matador in her younger years. When Javier politely requested the necessary documents, the saleswoman put on her best "I’m just a sweet abuelita" act and claimed she didn’t have them. But Javier wasn’t fooled; he stood his ground, saying, "No documents, no dinero." Eventually, she relented, but only offered up some of the papers, proving that in business, you sometimes need more persistence than a siesta.

Why Due Diligence Matters

• Start Early: As soon as you know the business’s name, the clock starts ticking. Gather information from independent sources about the business’s market position, potential legal issues, and customer reviews. Knowing what you’re getting into is half the battle.

• Be Prepared: Before you start the due diligence process, decide what documents are needed. This includes materials for immigration petitions, if applicable, and any documents required for a thorough audit. It’s like packing for a trip—you don’t want to realize you forgot something important halfway there.

• Set Realistic Deadlines: When making an offer, it’s crucial to set a timeline for receiving the required documents. The rule of thumb? Double whatever timeline your professional suggests. But don’t get too comfortable—anything longer than 3-4 weeks could make you look less serious than a flamenco dancer with two left feet.

• Handle Pushback with Grace: Sellers may claim they don’t have certain documents or may refuse to sign an offer right away. Be firm, but flexible. Remember, negotiation is an art form, and you’re the artist.

• Tailor Your Checklist: The list of required documents can vary depending on the type of business. It’s like choosing tapas—different dishes for different tastes. Make sure your list aligns with the immigration attorney’s requirements and the specific business you’re eyeing.

Remember These Points:

• Start due diligence as soon as you know the business's name.

• Gather information from independent sources.

• Prepare a checklist of required documents early.

• Set deadlines that are reasonable but firm.

• Be ready for pushback and stay strong in negotiations.

For more questions about buying a business call us +1 (561) 867-7697