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The Process of Buying or Selling a Business: A First-Time Buyer’s Guide to Due Diligence

Strictly Business

Due diligence is the buyer’s process of discovering and evaluating information about a seller’s business to confirm that acquiring the seller’s equity or assets is a sound investment. However, the process of conducting due diligence differs between transactions for a variety of reasons.

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The Process of Buying or Selling a Business: An Overview

Strictly Business

Initial Due Diligence After an NDA is signed, the parties typically begin sharing information so that the buyer can determine if it wants to make an offer for the business. At this stage, high-level information is shared, such as financial statements and other key information about the business.

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The Process of Buying or Selling a Business: M&A Letters of Intent

Strictly Business

LOIs are typically entered into after discussions regarding a potential business acquisition have reached a threshold stage where both the prospective buyer and seller wish to memorialize the high-level terms of the proposed transaction. deal structure, purchase price, form of consideration); Material Signing and Closing Conditions (i.e.

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The Process of Buying or Selling a Business: M&A Purchase Agreements

Strictly Business

The purchase agreement is typically drafted by the buyer’s counsel after the letter of intent has been signed and the buyer has done enough due diligence to feel confident that it wants to pursue the transaction. This article is for general information only.