What’s involved in ‘Due Diligence’ and why should a buyer be concerned about it?

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Due Diligence is analysis that is performed by someone looking to buy a business. It delves into just about every aspect of the business with particular focus on financial results. During this process buyers are looking for reasons to reduce the sale price for the business. It pays for sellers to do their own Due Diligence well beforehand to fix any issues that could have a negative impact on the value of the business.