• By Daren Leng, Senior Business Broker, ABC Business Sales

If you’re thinking about selling your business, understanding due diligence is crucial.

Once the purchaser and vendor have agreed terms in the form of a sale and purchase agreement, the purchaser then starts their due diligence, with their advisors.

Typically, this can take between three and six weeks.

Due diligence is the detailed investigation a buyer undertakes before completing a purchase. It’s their opportunity to verify the financial, legal, and operational health of your business.

Buyers will review accounts, contracts, leases, employee agreements, and customer relationships, looking for any risks or hidden surprises.

For sellers, good preparation is key. Clean, organised records and transparent communication can speed up the process and build buyer confidence.

A well-managed due diligence process often leads to a smoother sale.

Working with an experienced advisor can help you anticipate questions and present your business in the best possible light.

Being ready for due diligence shows that you’re serious about selling, and gives buyers one more reason to say yes.

• For more guidance, contact Daren Leng at ABC Business Sales – Your Business Broker of Choice.
• Daren Leng, Senior Business Broker, ph 021 0278 6045 or email darenl@abcbusiness.co.nz.