Best of… The 5 Basic Steps to Due Diligence

by | Apr 27, 2020 | PKF Texas - The Entrepreneur's Playbook®, Tax and Accounting Desk

Jen: This is the PKF Texas Entrepreneur’s Playbook. I’m Jen Lemanski, and I’m back again with Kimberly Wood, an Audit Senior Manager and one of the faces of the PKF Texas Transaction Advisory Services Team. Kimberly, welcome back to The Playbook.

Kimberly: Thanks for having me.

Jen: Last time you gave us an overview of the due diligence process. What are some ways to facilitate due diligence?

Kimberly: There are five key ways that the buyer can help facilitate this process:

  1. They can get their house in order, both financially and operationally.
  2. They can show a history of growth. They want to be able to demonstrate or perform a deep analysis of their historical branch level sales. This will just help the buyer see and understand the story better and show their potential for growth.
  3. They want to prove their potential. They want to be able to demonstrate opportunities for revenue, profit, and market growth.
  4. They want to prevent their partners or employees from diverting the process.
  5. They want to be prepared to sell at the right time.

Jen: Perfect. So now, does this apply to both buy side and sell side?

Kimberly: These are things that the sell side will want to do to get ready for the buyer.

Jen: Perfect. We will get you to talk a little bit more about some due diligence topics soon.

Kimberly: Sounds great.

Jen: For more about due diligence, visit PKFTexas.com/TransactionAdvisoryServices. This has been another Thought Leader Production brought to you by PKF Texas – The Entrepreneur’s Playbook. Tune in next week for another chapter.

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