{"id":4647,"date":"2016-04-04T10:47:37","date_gmt":"2016-04-04T15:47:37","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/closing-a-business\/due-diligence-checklist-being-acquired.html"},"modified":"2024-05-23T00:52:02","modified_gmt":"2024-05-23T05:52:02","slug":"due-diligence-checklist-being-acquired","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/closing-a-business\/due-diligence-checklist-being-acquired.html","title":{"rendered":"Due Diligence Checklist – Being Acquired"},"content":{"rendered":"\n
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Due Diligence Checklist – Being Acquired<\/h1>\n
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Created by FindLaw’s team<\/a> of legal writers and editors<\/i><\/p>\n\n | Last updated\n

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When you’re selling or closing your small business, <\/a>you have a lot to do. You have just as much to do when you are merging with another small business<\/a>. The process of acquiring your assets, stocks, or entire business is a long process. It requires you to act in good faith <\/a>and comply with a due diligence<\/a> investigation of your company’s finances and operations. You need to follow state laws, contract laws<\/a>, and internal procedures, too.<\/p>\r\n

Every industry has its own set of due diligence requirements and how to conduct the due diligence process. Make sure you reach out to a business attorney in your state<\/a> before taking action. Failing to act in good faith and with due diligence can void the acquisition and open your business up to fraud lawsuits, which come with hefty penalties.<\/p>\r\n

In the meantime, the following is a checklist of information and documents you can typically expect the acquirer will want to review.<\/p>\r\n

A. Organization and Good Standing<\/h2>\r\n