Due diligence and red flags
Checklists, documents to request and the warning signs that matter.
- Due diligence checklist for buying a businessA due diligence checklist for buying a small business: financial, tax, legal, lease, employees, customers, operations and licences, with what to look for.
- Customer concentration risk when buying a businessHow to measure customer concentration (top 1, top 5, top 10 share), why lenders and QoE reviewers flag it, and how to protect yourself in the deal.
- Due diligence questions to ask when buying a businessWritten due diligence questions to send a business seller, grouped by finances, customers, staff, operations and legal, with why each question matters.
- Employees when buying a business: what to checkEmployees when buying a business: payroll records, contractor vs employee classification, accrued PTO, key staff retention, I-9s and notice rules.
- Lease assignment when buying a businessLease assignment when buying a business: assignment vs new lease, landlord consent, personal guarantees, remaining term vs SBA loan term, rent changes.
- Legal due diligence for a small business acquisitionLegal due diligence when buying a small business: entity good standing, litigation, liens, contracts, IP, permits, employment and environmental checks.
- Red flags when buying a business, and what to do about eachRed flags when buying a business, grouped by severity: refusing records, deposits below revenue, unsupported add-backs, concentration, lease problems.
- Transferring business licenses when you buy a businessWhich business licences and permits transfer when you buy a business and which don't: personal, location and entity licences, and how to plan timing.