Business Buyer should understand the difference between ‘Due Diligence’ and ‘Audit’

Often, buyers find themselves in a state of confusion when conducting their due diligence following a conditional agreement to acquire a business. They become entangled in the process of identifying flaws in the current business operations and the seller. This leads to feelings of panic, causing them to overlook positive aspects and occasionally drop down a favorable business opportunity. Subsequently, they may experience regret upon realizing their oversight on major pluses. Not only getting into a wrong business is a mistake, but also not being able to identify a right business is also a mistake! People usually do not evaluate the ‘Opportunity Loss’. Be careful and be clear on your purpose and stay focused when you perform your due diligence.