Main Street & Global

BusinessesForSale.com transaction diligence

Published · Reviewed by The Diligence Standard Team · Updated

A global audience increases reach but also makes a clear U.S.-specific evidence package more important: entity, tax, licenses, earnings bridge and exactly what is included in the sale.

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