BTB Buyer Guide
Business Due Diligence Checklist
Due diligence is where a buyer tests whether the business and transaction match the story presented before the purchase. The exact scope depends on the company and deal, but the goal is consistent: verify material claims and identify obligations or risks before closing.
BTB guide · Updated September 30, 2026
Core areas to investigate
Financial: tax returns, P&Ls, balance sheets, bank or processor support, payroll, debt and major expenses.
Customers and market: concentration, retention, pricing, competition, demand and material customer agreements.
Operations: suppliers, inventory, equipment, systems, facilities and dependence on the current owner.
Legal and compliance: entity records, licenses, permits, contracts, leases, claims, liens and required approvals.
People: key employees, compensation, benefits, roles and transition risk.
Transaction: what is being purchased, excluded assets, assumed obligations, working capital, financing, contingencies and closing requirements.
Start with the documents to request from a seller and turn important seller answers into items that can be verified.
Put the guide to work
Educational information only. Verify transaction, legal, tax, accounting and lending questions with qualified professionals and current source material.
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Business buying guide · SDE explained · Valuation guide · Due diligence · Seller financing · Making an offer