Due Diligence: Buying A Business

We've have been around the buying block a time or two.
We know the right questions to ask, and the responses to be looking for.

You’ve gone over the company’s financial statements with a fine-tooth comb and you’re about to make a decision on whether you want to make an offer to buy that company. Stop right there! The numbers tell you only half the story—the more obvious half. Every company has hidden assets and liabilities that, although less visible, can add substantially to the risks and benefits of acquiring the business. Here are the initial areas to check out:

The owner.

The executives.

The property.

The products.

The customers.

The employees.

Personal questions.

Representation.

Laska Company performs basic duties when dealing with a buyer, or “customer”. We direct you to consult your attorney. You can expect us to provide the following customer-level services:

  • Assist you in the purchase of a business using reasonable skill and care;
  • Perform these acts in good faith, honesty, and fair dealing;
  • Properly account for money or other property you place in our care;
  • Disclose “adverse material facts” which are, or should be, within our knowledge. These include facts that would significantly affect the desirability or value of the business to a reasonable person, and facts that would indicate to a reasonable person that one of the parties cannot, or will not, complete his obligations under a contract.