From promising teaser to informed acquisition.

Turn the acquisition thesis into questions

Due diligence works best when it tests why you want to buy the business. Write down the assumptions behind the opportunity: the customers will stay, the team can deliver, margins are repeatable and the transition is manageable. Then identify the records and conversations needed to test each assumption.

Connect financial and commercial evidence

Review financial statements alongside sales data, customer records and recent trading. Look for consistency between invoicing, receipts and reported revenue. Understand seasonality, customer concentration and any unusual movements. Investigate the reasons behind trends rather than relying only on a summary chart.

Understand the operating engine

Map the people, systems, equipment and suppliers that make delivery possible. Which capabilities depend on one individual? What maintenance or investment is approaching? Are procedures documented and permissions transferable? The answers help shape both the diligence plan and the first months of ownership.

Review the transaction perimeter

Be clear about whether the proposed acquisition concerns assets or shares and which rights and obligations are included. Contracts, property arrangements, intellectual property, employee matters and sector requirements need appropriate attention. Bring the relevant professional advisers into the process in time to resolve questions before completion.

Keep a disciplined question log

Group requests by topic, give each question an owner and record the evidence received. Separate confirmed facts from assumptions and unresolved points. Prioritise issues that could change the decision, price, financing or transition plan. A well-run process respects the seller’s time while preserving the depth needed for an informed decision.

Plan the handover while you investigate

• Identify customer and supplier introductions.

• Agree the scope of seller support and knowledge transfer.

• Map systems access, records and operational responsibilities.

• Understand cash needs in the opening months.

• Set realistic priorities for the first stage of ownership.

Diligence is not simply a document collection exercise. It is the work of turning an attractive proposition into a clear understanding of the business you would own and the responsibilities you would take on.