Why it matters at exit
Due diligence is the stage where a buyer tests every claim you have made about the business, so any gap or surprise found here tends to translate directly into a lower price or extra conditions attached to the sale. Common problems include profits that cannot be reconciled to the bank statements, customer relationships that turn out to be verbal or on expired contracts, key staff with no written terms, and tax or legal liabilities that were never recorded. If the process drags on because records are disorganised, buyers lose confidence and may reopen the price or walk away. Preparing your financials, contracts and records well before you go to market, sometimes through your own vendor due diligence, shortens the process and protects the value you have built.