Deal stages · Before you buy
What to verify before closing a business purchase
Published · Reviewed by The Diligence Standard Team · Updated
Before closing, reconcile final economics to the LOI, resolve material findings, confirm conditions and test the transition plan. Signing documents should not be the first time access or transferability is checked.
A realistic transaction story
A buyer of a neighborhood gym reached closing with financing and legal documents ready. The member database export had not been tested and the payment processor required a new underwriting review. Revenue continuity was less certain than the closing checklist suggested.
What the evidence changed
Legal readiness and operating readiness were not the same milestone.
What to check
- Write down the exact claim and who supplied it.
- Ask what was independently tested, by whom and under what scope.
- Run a pre-close readiness review covering funds flow, consents, system access, customer billing, employees and day-one responsibilities.
- Translate any unresolved gap into cash, price, terms, timing or a decision not to proceed.