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Become Business Broker Due-diligence
Due diligence

Due-diligence checklist

The most dangerous phase — keep it organized and deals don't die. Click each item to cycle R requested✓ receivedV verified. Received is not done: a document you haven't tied back to the books proves nothing. Progress counts verified only. Detail in the protocol (Day 18) · printable (.docx) · data-room index (.docx).

0% 0 R · 0 ✓ · 0 V / 44

Corporate & legal

Financial & tax

Operations

Contracts & leases

HR & payroll

IP & IT

Compliance & permits

Customers & suppliers

Deal-killer red flags — stop and re-price, don't rationalize

Revenue that can't be verified against bank deposits or processor statements ("cash business, trust me")

Seller refuses tax returns or IRS transcripts

Lease expiring without assignment rights or renewal options

Liens the seller "forgot" — always run your own UCC search

One customer over 30% of revenue with no contract

On deals above ~$1M SDE, add a third-party quality-of-earnings review on top of this list — it costs a fraction of what a bad add-back does. This checklist tracks ONE active deal; copy the status out before resetting for the next.