Main Street & Global

BusinessesForSale.com transaction diligence

Published · Reviewed by The Diligence Standard Team · Updated

Because inventory spans geographies, brokers, private sellers and business sizes, normalize the evidence standard yourself. Confirm legal entity, U.S. state footprint, financial basis, seller identity, assets and local requirements.

Diligence focus

  • Seller/intermediary identity
  • Financial basis and accounting standard
  • Entity and jurisdiction
  • Included assets/inventory
  • Currency and cross-border issues where relevant
  • Tax records
  • Lease/site control
  • Licensing

First evidence requests

  • Seller/intermediary identity and authority
  • U.S. entity documents
  • Tax returns and monthly P&L
  • Bank/deposit reconciliation
  • Asset and inventory schedule
  • Lease or real-estate documents
  • License/permit register
  • Reason for sale and transition plan

Warning signals

  • Cross-border structure is unclear
  • Financials use a basis not comparable to U.S. buyer underwriting
  • Listing price mixes property, inventory and goodwill without a bridge
  • Seller authority to transact is unclear
  • Local operating permissions are assumed