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3 Key Objectives for Buyer’s Due Diligence

by | Oct 18, 2022 | PKF Texas - The Entrepreneur's Playbook®, Insight-Post

When you’re engaging in a business transaction, there are things you need to know for buyer’s due diligence. In this next episode of PKF Texas – The Entrepreneur’s Playbook®, Audit Senior Manager, Kimberly Wood, CPA, CEPA, she shares three key objectives for buyers to consider.

Jen: This is the PKF Texas – Entrepreneur’s Playbook®. I’m Jen Lemanski and I’m back once again with Kimberly Wood, an Audit Senior Manager and one of our Approachable Advisors™ here at PKF Texas. Kimberly, welcome back. Glad to have you here.

Kimberly: Thanks for having me.

Jen: So, what are the key objectives of buyer’s due diligence?

What to Keep in Mind for Buyer’s Due Diligence

Kimberly: Well, there are plenty, but if I had to narrow down, it would be:

  • the normalization and substantiation of historical earnings,
  • identifying key customers and suppliers, and
  • identifying cyclical and seasonal trends.

But keep in mind with each business and each buyer in different industries… these key objectives will fluctuate.

Jen: So, how does that play into the advice that you give our clients when they’re considering a transaction?

Kimberly: It all depends on the risk of the business and what they’re looking for in that business of what we want to dive into.

Jen: Perfect. Sounds good. Well, we’ll get you back to talk a little bit more about transaction-related items. Sound good?

Kimberly: Sounds good.

Jen: This has been another thought leadership production brought to you by the PKF Texas – The Entrepreneur’s Playbook®. For more information about this and other topics, visit www.pkftexas.com.

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