Think Like a Buyer: The Benefits of Sell-Side Due Diligence

More About | Dealerships | Private Equity

When purchasing a dealership, whether an asset or stock transaction, buyers typically like to make sure they know what they are buying. They conduct buy-side due diligence to assess the quality of the target’s earnings and cash flows, allowing them to identify potential issues or risks associated with the seller’s business and its operations.

In the same vein, sellers may also conduct their own due diligence. Sell-side due diligence is not necessarily as commonplace as buy-side; however, it can be just as impactful. In fact, preparing for the sale – before the “for sale” sign even goes up – may greatly decrease the potential of a derailed transaction, avoid unnecessary delays in the sales process and expedite the buyer’s due diligence.

This was originally posted in the Automotive Buy Sell Report. Click here to read the full article.

Author:

Louie Galbraith, Senior Manager
ph: 703.970.0442 or email: Louie.Galbraith@dhg.com