Buyer’s Disclosure Statement
Definition: A written statement made by the buyer that assists the seller in evaluating the buyer's ability to purchase and operate the business.
Tips: The statement includes any disclosures that may impact the seller’s willingness to sell the business to the buyer. This is particularly useful when the seller is financing a portion of the sale. The buyer's disclosure statement is only common for smaller transactions. Typical items addressed include whether the buyer has ever declared bankruptcy, ever been arrested for a crime, or ever defaulted on a loan. In addition to a disclosure statement, we also suggest asking the buyer for a credit report.