What to expect during sale due diligence

Due diligence is the detailed review that helps a buyer assess business information and the risks of a potential acquisition. For the founder, it is also an opportunity to explain how the company works and what a transition would require.

Preparation supports the review, but does not guarantee closing or an unchanged price.

What gets reviewed

Scope depends on the transaction. It may include finances, taxes, contracts, permits, people, systems, and commercial relationships. BDC's due diligence guide provides a general framework from Canada; local requirements should be reviewed with advisors in Panama.

Agree on an information list, responsibilities, priorities, and a secure channel for documents. Distinguish what is available from what needs further preparation.

How to explain differences

Work with your accountant to reconcile financial statements, tax filings, and bank activity. When a figure needs context, provide an explanation and supporting records.

Identify important contracts, customer concentrations, and functions that depend on you. The aim is not to present a risk-free company, but to make an informed assessment possible.

What findings can mean

A finding may call for more information, corrective action, revised terms, or a decision not to proceed. Its significance depends on its business impact and what both sides are willing to accept.

Review proposals with your advisors. Do not assume that a price holdback or conditional payment resolves every risk on its own.

How to organize the timetable

Set milestones and review progress regularly. Timing depends on scope, information availability, and required approvals; there is no universal schedule.

Our guide to preparing your business provides a starting point. Santa Maria Ventures seeks to acquire and operate established businesses for the long term. To understand our proposed process, start a confidential conversation, with no cost or obligation.