Anybody have any tips on Due Diligence?

[anteater]

Friend is undergoing this at the moment, buying a cleaning business. I have never come accross this before so thought I'd ask the MN collective brain..

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Does this help

due diligence

Do you mean the term 'Due diligence'?
I have no experience but I think it means doing all your research re. profits etc before you actually go ahead and sign on the dotted line. Friends of mine bought a kindergarted earlier this year and had about a few weeks of 'due diligence' before it was all done and dusted to make sure that the business was worth what the vendor said it was etc.

yes thats it ghost.
Obviously all cases are different but I wondered what proprtion of buyers drop out after going thro the process of due diligence?

It's your opportunity to go through the records of the business with a fine toothcomb, to see if there is anything untoward happening, and also to give you a greater feel of the company.

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A dad from ds school recently lost his job and has decided to buy a business. He asked me if I knew anything about due diligence, as I am in business, but I have no experience.
Its a cleaning business in a northern city.
Have looked at what is written about it, business link etc but wondered what specifics he should be looking at.
Obviously he is taking advise but they are a lovely family and just wanted to be helpful if I could!

Message withdrawn