What due diligence checklist should I use before buying an existing business?

Use a structured checklist and do not skip the uncomfortable items.

Financial
- Bank statements vs claimed sales (12–24 months)
- Tax returns, sales tax filings, unpaid liabilities
- Supplier payables and customer receivables aging

Legal / ownership
- Ownership proof, leases, licenses, trademarks
- Pending disputes, loan guarantees, employee claims

Operational
- Customer concentration risk
- Key employee dependence
- Transfer of digital assets (domain, Maps listing, social pages, SIMs)

Pay in staged tranches where possible. Involve a lawyer for the sale agreement and handover schedule.

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