How long is the due diligence period when selling a business?
How long is the due diligence period when selling a business?
Due diligence is an allotted period of time that is given to a prospective buyer to research the business they’re interested in buying before completing the transaction. Never been through the due diligence period before? If you’re looking for information on how long it usually takes, keep reading for more information.
What is the purpose of the due diligence period?
To verify a seller’s information — The purpose of this period of time is to give a buyer time to verify the information a seller has presented. This includes verifying things like tax information, financial information, and if a business owner has any liens against them. These are just a few examples.
To give a buyer an opportunity to back out — If, for example, a buyer were to discover any substantial amount of debts that would become their own in the event of a purchase, the prospective buyer may decide to withdraw from the purchase during the due diligence period.
How long is the due diligence period?
How long the due diligence period is will be specified in a letter of intent. This period of time can be agreed upon by each party. Typically, the standard due diligence period for business transactions can be between 45 and 180 days. This number may vary.
Lion Business Brokers can help you determine how long your due diligence period is
Our team here at Lion Business Brokers has extensive experience in assisting people who want to sell businesses. We’re confident that we know the right questions to ask while keeping your best interest at the forefront of our minds.
We possess the capability to perform several types of services, including but not limited to business valuations, closing deals and qualifying buyers. Lion Business Brokers can guide you through every step of the way, including when you need assistance in determining how long to negotiate the due diligence period when selling your business. We’re a team made up of trusted mergers and acquisitions specialists who value our clients’ needs over our own.
Our team is happy to help you through the selling process while ensuring that you make informed choices that best fit your needs. If you want to know more about how long the due diligence period should extend while you’re selling your business, reach out to us. We’re a trusted name in the industry. We work hard every day to make sure we can be a valuable resource and partner to our clients. Take a moment to set up a free business valuation consultation today or drop us a line to discover how we can help you appraise, buy or sell a business. Let’s get the process started!
How long is the due diligence period when selling a business?
Due diligence is an allotted period of time that is given to a prospective buyer to research the business they’re interested in buying before completing the transaction. Never been through the due diligence period before? If you’re looking for information on how long it usually takes, keep reading for more information.
What is the purpose of the due diligence period?
How long is the due diligence period?
How long the due diligence period is will be specified in a letter of intent. This period of time can be agreed upon by each party. Typically, the standard due diligence period for business transactions can be between 45 and 180 days. This number may vary.
Lion Business Brokers can help you determine how long your due diligence period is
Our team here at Lion Business Brokers has extensive experience in assisting people who want to sell businesses. We’re confident that we know the right questions to ask while keeping your best interest at the forefront of our minds.
We possess the capability to perform several types of services, including but not limited to business valuations, closing deals and qualifying buyers. Lion Business Brokers can guide you through every step of the way, including when you need assistance in determining how long to negotiate the due diligence period when selling your business. We’re a team made up of trusted mergers and acquisitions specialists who value our clients’ needs over our own.
Our team is happy to help you through the selling process while ensuring that you make informed choices that best fit your needs. If you want to know more about how long the due diligence period should extend while you’re selling your business, reach out to us. We’re a trusted name in the industry. We work hard every day to make sure we can be a valuable resource and partner to our clients. Take a moment to set up a free business valuation consultation today or drop us a line to discover how we can help you appraise, buy or sell a business. Let’s get the process started!
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