Entrepreneur magazine, through its "Small Business Encyclopedia," defines 'due diligence' as "a reasonable investigation of a proposed investment deal and of the principals offering it before the transaction is finalized to check out an investment's worthiness; generally performed by the investor's attorney and accountant."
I hope this post will provide entrepreneurs with insights into the verification requirements investors may have when assessing the risks of investing in a business. What additional information do you recommend adding to the checklist? Do you have any recommendations or lessons learned on utilizing the due diligence process effectively?
Due Diligence Checklist for Investing in a Business from Aaron Rose
This is helpful stuff. I should have read it before I tried to do business with an outfit out of Texas!ReplyDelete