Financial Due Diligence
It is normal business practice that before a business purchases an asset including another business that a financial due diligence exercise is conducted.
This includes reviewing all financial records plus anything else deemed material to the sale. Sellers could also perform a due diligence analysis on the buyer. Items that may be considered are the buyer's ability to purchase, as well as other items that would affect the purchased entity or the seller after the sale has been completed.
At FENCI we can help advise both the buyer or the seller, obviously not of the same deal, to investigate-or-audit-or-verify (whichever is applicable) any potential investment decision beforehand.