Buying a Business - Chapter 8b

In this episode, we continue exploring the due diligence process by focusing on the detailed financial, operational, and organisational checks needed before acquiring a business. We review key areas such as financial records, bank statements, cash flow, tax history, and liabilities to verify the true financial health of the company. We also examine sales and marketing performance, operational processes, systems and software, and the condition of assets and equipment. Finally, we assess the people involved in the business, including owners, staff, customers, and suppliers, to understand relationships, dependencies, and potential risks. By thoroughly reviewing these areas and speaking with multiple stakeholders, MSPs can gain a clear picture of the business and ensure there are no hidden issues before proceeding with the acquisition.

Mike Knight MBA FCIM Director, MKLINK Ltd