Reverse due diligence is when a company performs due diligence on itself to evaluate readiness for sale. This allows you to spot and correct any issues before presenting the business to buyers. Reverse due diligence helps you stay in control of the sale process, maximize value, and retain your leverage.
Reverse due diligence can also make for a smoother transition because you’ll anticipate buyer questions and prepare the answers and supporting documents in advance.
Start planning to sell your business long before you’re ready to exit. Reverse due diligence helps you see where to focus your energy.