Healthcare businesses are a hot commodity in the market today. A buyer may even be interested in your healthcare practice right now. Whether or not you’ve gone down the road of selling your practice before, the process can be stressful and time consuming. A lot of the time and stress centers around one aspect of a transaction—due diligence. Due diligence can certainly feel like a roadblock to both sides of a transaction, but it doesn’t have to be.
What Is Due Diligence?
Due diligence is a prospective buyer’s opportunity to look under the hood of the business they are interested in purchasing. Once a letter of intent is signed, the buyer will ask for a detailed list of documents and information to evaluate before finalizing the deal. Due diligence can encompass a wide range of information, including financial statements, copies of licenses or permits, corporate formation documents, employee information, policies, procedures, lists of services provided, leases, vendor and payer contracts, asset lists, litigation information and anything else a buyer may need to evaluate the business.
