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Let’s TalkBuyer’s Disclosure Statement
A written statement made by the buyer of a business 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.
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