Buying a Business Part 1: From Start to Finish

Jean Feng

When engaging in a business acquisition, a lawyer can help speed up the process by reviewing documents early, even if they are in draft form. This will help them learn about the transaction and any risks involved.

Clients are often the determining factor when deciding how long the whole process or transaction will take. The due diligence section is often completed within 2 to 4 weeks and the majority of work on a comprehensive share purchase can be finished within a month.

However, sometimes clients have their own time frame in mind and will ask a lawyer to accommodate those needs. If they want to complete due diligence sooner, a lawyer can find an alternate way (i.e. due diligence just on taxes or anything outstanding before we assess the rest of the business). There are also instances when a client requires information prior to the completion of the process (i.e. If there is litigation occurring, or if a situation requires an imminent decision).

At the end of the process, the client will have a clearer picture of the business they’re looking to purchase. They’re given a full report of the findings, which consists of each due diligence search. The lawyer will then explain the particular items to be aware of and will help craft the best possible deal structure for their client.

Going through the whole process of due diligence is one of the most important steps to purchasing a business. When it is done properly, clients can learn about potential risks in order to negotiate the best deal possible.