About Due Diligence When Buying a Business

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When buying a business, it's important to find out if the business is worth the price and to find out about the nature of their clientele. Use common sense and do homework before buying a business with help from a certified civil mediator in this free video on law and legal questions.

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Video Transcript

You have recently considered buying a business or a property and you've heard about this thing due diligence but you're not sure what that's all about, but you want to make sure that you're not guilty of not engaging in due diligence. Hello, I'm Robert Todd and I'm here to answer the question what is due diligence when buying a business? Well generally speaking you can almost say due diligence can be analogized to common sense which of course as we all know common sense is not common practice. Due diligence is finding out is the business that you're about ready to buy is it really worth the price? It means looking at the books, what is the amount of business this business is doing? What is the nature of their clientele? Is it a stable clientele? Is it a seasonal clientele? Is this nature of this business legal? Does it violate public policy? Is it on the end of technology that's going to be replaced by new technology? Things of this nature. It means doing your homework before you sign the contract to purchase the business. If you have any questions about what maybe due diligence in buying a particular business in your location and you're just not sure of what it means, we strongly urge you to consider hiring the services of a lawyer that regularly engages in business transactions who can help present you with the questions that you may want to ask and have answers for. I'm Robert Todd and thank you for watching.


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