What is due diligence?

Due diligence is a term that is used all the time and it’s not always clear what it means.

Due diligence is a time for both sides of a deal to verify facts and confirm that they want to move forward with the deal. Let’s say you’re buying a business. Due diligence can cover many things but should at least include a review of the financials (because you want to make sure you’re getting a good price), a review of existing contracts (so you know what you’re committing yourself to), looking into employees, reading through the business and marketing plan, and visiting the current business location and examining the property.

Once you’ve completed due diligence, and you really should have an attorney help you with this, you can make a fully informed decision of whether the deal is the right deal for you.

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