“Seller beware.” – Denise Barnes, American Entrepreneur and Writer

A major mistake entrepreneurs often make in the early phases of a transaction is dealing with buyers who aren’t qualified. This is true even in the middle market. You can waste vast amounts of time weighing the merits of an offer without first obtaining background information on the buyer. 

Just as buyers perform due diligence on you and your business, performing due diligence on buyers is paramount. Screening potential buyers is, in fact, one of the most critical first steps in the sale process. This is such vital information that I have already stated some of it in Chapter 14 titled “Keeping the Sale a Secret.” Its importance cannot be overstated.