Helping Businesses at Every Stage of the Transaction Service

December 15, 2020

Whether you’re a buyer or a seller, doing your due diligence helps you maximize your value. Not only is due diligence equally crucial to both buyers and sellers, but both buy-side and sell-side due diligence come with specific benefits and areas of concern that you must account for. Seeking transaction advisory services of professionals can ease the process of you either securing a solid investment or selling your life’s worth of work for a proper value.

Buy-Side Due Diligence

Phase 4 of the buying or selling of a pharmacy consists of doing your due diligence. If you’re a buyer looking to buy a pharmacy for sale, buy-side due diligence will weigh the factors that identify the value and everything that takes from that value of the target company. Naturally, the seller will be keener to disclose details of the former than the latter. Confidential Information Memorandums (or “CIMs”) provided by selling firms should be thought of as a starting point of your research provided by the company itself. Buy-side due diligence takes account of all the praise the seller wants you to see but also looks at the negative aspects that the seller has not shone a light on.

Reasons to conduct buy-side due diligence:

– Maximize the value of the deal you’re working on.

– It helps the buyer understand the risks of acquiring or buying a new business.

– Shed light on some uncomfortable truths about the business you may have to deal with once you buy it.

– Clearly identify factors that drive business that will be critical to the future success of the company.

Sell-Side Due Diligence

Sell-side due diligence is the other side of the same coin. It is the process of identifying and assessing your own company’s value to prepare it for sale. It can help reveal the strengths and weaknesses that potential buyers need to know before purchasing a company. This also allows sellers to identify any weaknesses that can be addressed to realize the full value of the business at the time of sale and prepare for potential buyer questions.
If you’re a business owner, it is recommended to conduct sell-side due diligence whether you’re actively seeking to sell your business or not. You can think of it as a form of internal audit, whereby you take a critical and analytical look at what’s driving your business and where value-enhancing improvements can be made. You can also seek the help of business transaction advisors like EVCOR, who can help create a plan of action to get your business’s value.

Reasons to conduct sell-side due diligence:

– Prepare and ready your business for sale.

– Identify weaknesses, strengths, sustainable cash flows, quality of earning, and more.

Contact us to learn more about buy and sell-side due diligence as well as our other transaction advisory services in Toronto, Vancouver, Edmonton, and many other areas, including Calgary, Regina, Saskatoon, Winnipeg, and most other regions of Alberta, Saskatchewan, Manitoba, and Ontario.