When they examine the business.
WHAT THEY EXAMINE
Corporate documents and registers Financial records Tax compliance Customer contracts Employment arrangements Intellectual property ownership Litigation and disputes Regulatory compliance
WHAT COMMONLY CAUSES PROBLEMS
Missing filings Undocumented agreements Intellectual property not properly assigned Mixed personal and business finances Unremitted statutory deductions Verbal arrangements with staff or contractors
WHY THOSE STOP TRANSACTIONS
They create liabilities the investor would inherit.
WHAT TO DO BEFORE STARTING
Assemble everything, and fix what is wrong.
HOW LONG THAT TAKES
Longer than expected, particularly intellectual property assignments.
WHAT TO PREPARE
A structured set of documents, organised and complete.
WHY ORGANISED
Disorganisation suggests how the business is run.
WHAT TO DISCLOSE
Problems, early and voluntarily.
WHY
Discovered problems are far worse than disclosed ones, and they change the terms.
WHAT TO EXPECT
Questions that feel intrusive.
WHAT TO PROVIDE
Accurate answers.
WHAT TO NEVER DO
Overstate anything.
WHY
It is verified, and discovery ends the transaction and your reputation.
WHAT TO TRACK
Requests made and answered.
WHAT TO ARRANGE
Legal support.
WHAT TO PROTECT
The business, which must continue operating throughout.
