Reverse due diligence enhances M&A value

Description

Abstract: A business that’s preparing itself for sale can increase the likelihood of a successful transaction by investing in reverse due diligence — also known as “sell-side” due diligence. It involves taking a hard look at the company through a prospective buyer’s eyes. This article describes some of the many benefits to be gained, including maximizing value, correcting problems and determining the most efficient tax structure. While it’s possible to conduct reverse due diligence with one’s own resources, using a CPA or other professional lends credibility to the process and helps build trust with prospective buyers.