Due diligence your buyers

Founders, if you have an offer to purchase your business, make sure you DD the buyer.

Sales processes take a lot of time and energy. You only want to get into that with someone you can trust.

There are buyers who will make it take so long you nearly run out of money.

There are buyers who will always find a reason to offer you less at the end of the process.

Often, you will have to stay with the business a couple of years to get the full payout, particularly in an earn out. There are buyers who will make your life so difficult you won't want to stay.

Ask to speak to the founders of the last three companies they bought. Make sure you speak to someone who has been through that two year period.

There are good and bad actors out there. You need to make sure you are dealing with a good one.

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