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.