Due Diligence in Buying and Selling a Business

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This course explores the process of due diligence from both the buyer and the seller’s perspective. You will learn the importance of due diligence for both parties and will consider the risks involved in buying or selling a business, and what you can do to minimise these.

£100 +VAT

4 CPD hours

120 days’ access

Use ACPD101 for 10% off any purchase.

Due Diligence in Buying and Selling a Business

£100 +VAT

4 CPD hours 120 days’ access
Use ACPD101 for 10% off any purchase.

Due Diligence in Buying and Selling a Business

This course is not currently available. To find out more, please get in touch.

This course will enable you to

  • Understand the role of due diligence in the acquisition process, and the need for disclosure and reporting
  • Identify the benefits of conducting due diligence as a buyer before purchasing a business
  • Explore due diligence from the seller’s perspective and how to find the right buyer for your business
  • Consider the risks involved in buying and selling a business, and why the process may sometimes fail

About the course

Buying a business is a major commitment and can be a daunting process. Due diligence is a process of discovery that can help you ensure that the business is what you want before buying it. Both buyers and sellers can benefit from the process before acquisition and should take the time to learn what risks are involved.

Explore the process of due diligence from both the buyer and the seller’s perspective, with this course. You will learn the importance of due diligence for both parties and will consider the risks involved in buying or selling a business, and what you can do to minimise these. You’ll also discover the due diligence process for the purchase and sale of online businesses.

Contents

Why we need due diligence

Timeline and context of a deal
What is due diligence?
Disclosing information
Important information when buying a business
Explaining hostile takeovers
Complications during a hostile takeover
Due diligence reporting
The main parts of a due diligence report

The buyer’s perspective

A big commitment
What is wanted from a due diligence investigation?
The main aims of a due diligence investigation
Financial due diligence
Preparing an analytical review
The role of management
Technology and IT
Dealing with HR and employees
Understanding risk management practices

Selling a business

Selling and due diligence
What and why are you selling?
Finding the right buyer
Looking for the right buyer
Considering corporate culture
The hubris hypothesis
A pre-sale tidy up
Preparing for due diligence
Warranties and indemnities
The limitations on warranties and indemnities

Risk and buying an online business

Evaluating risk
The main risks to stakeholders
Moving into a new market
Deciding to buy into a new market
Reasons for failure
Buying an online business
Key considerations
Customers and suppliers

How it works

Author

John Taylor

John Taylor

John is a Chartered Accountant who has spent many years advising small and medium-sized businesses across the North of England. John is the author of two industry standard textbooks: Millichamp – Auditing and Forensic Accounting. He has also written several auditing textbooks for AAT courses.