Your m a due diligence Information
Author: Fernando Simo
Article Source: MiNeeds.com, where consumers get competitive bids from Real Estate Agents/Realtors. Read reviews, compare offers & save. It’s free!
Article Link: http://www.mineeds.com/Orlando/Transworld-Business-Brokers/Articles/Learn-from-those-who-lost-it-allPerform-a-Due-Diligence-Prior-to-Closing-on-a-Business-Transaction
Tags: Selling and Buying a Business in Central Florida
It’s the same old story. A buyer enters into a Purchase Agreement to buy a business, normally with a provision to conduct a due diligence within a 10-15 day period and, (guess what?) fails to do so. As a result, the buyer goes to closing, signs all of the documents required to transfer ownership only to find out later on that what he bought is not what he expected. As a result, the new business owner losses, in most cases, all of their liquid assets. It is a story which I find repeating all the time.
Obviously, a due diligence should be performed to:
a. Confirm that the business is what it appears to be.
b. Identify potential “deal killer” defects in the business being acquired.
c. Gain information that may be useful in determining the viability of the business.
d. Verifying that the transaction complies with the investment or acquisition criteria—what you were told is, indeed, the truth.
Having said that, what should I look at? Normally, for small transactions, the minimum you should be looking at are:
a. Current Payroll Information. Are the payroll and employees what I have been told?
b. Lease Agreement. This is important if you are looking to get a lease assignment.
c. Financial Statements – Balance Sheet and P&L. Do they represent what I have been told? Are they prepared by a reputable CPA firm?
d. Tax Returns
e. Bank Accounts—a good source to determine true cash flow.
So, PLEASE, do not make the mistake of ignoring the due diligence process. It will give provide you with the peace of mind of entering into a new business with a clear vision of its future.
Should you want to know more about selling or buying a business in Central Florida, please visit my webpage at www.bizbuyorsale.com or call me at 407-361-8886.
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Learn From Those Who Lost It All—Perform A Due Diligence...
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Article author: Mi Needs
Know your customer (KYC) is the bank regulation specifying the due diligence that financial institutions and other regulated companies must perform; it requires that they identify their clients and collect information relevant to doing business with them.
The US government has implemented KYC as part of the Bank Secrecy Act and the USA PATRIOT Act. KYC policies are used to prevent identity theft and money laundering, and they are an important tool for disrupting the funding of terrorism. KYC entails much more than just filling out forms; it is a process that touches every aspect of a customer relationship.
Banks that perform KYC monitoring for anti-money laundering (AML) and Counter-Terrorism-Financing (CTF) purposes often use specialised transaction-monitoring software designed to analyse names and monitor trends. This software identifies unusual activity, which is then subject to Enhanced Due Diligence (EDD) processes that use both internal and external sources of information, including the Internet, to determine whether a transaction is suspicious enough that it must be reported to the authorities.
In the US, this would involve filing a Suspicious Activity Report (SAR) with the Financial Crimes Enforcement Network (FinCEN). In the UK, it would require a report to the Serious Organised Crime Agency (SOCA)
Other types of companies also employ Know Your Customer procedures in order to ensure that their agents, consultants, and distributors are not susceptible to bribery. Banks, insurers, and export credit agencies now often ask their customers to provide detailed anti-corruption due-diligence information in order to verify their integrity. Consultancies exist that specialise in Know Your Customer processes in order to help multinational companies and SMEs enter new markets.
One key purpose of KYC controls is to monitor a customer’s transactions and check them against the customer’s recorded profile and the history on the customer’s account(s). Another is to verify that the customer is not on the Office of Foreign Assets Control's Specially Designated Nationals list, or any other such list of known frauds, terrorists, or money launderers.
The Specially Designated Nationals list contains thousands of entries, and it is updated monthly. There are also lists of third-party vendors, which are used to track links between persons considered to be high-risk due to negative media reports or public records concerning them.
Global Credit Solutions (www.gcs-group.com) is recognised as a leading supplier of KYC and due diligence reports.
Article author: Global Solutions
Know your customer (KYC) is the bank regulation specifying the due diligence that financial institutions and other regulated companies must perform; it requires that they identify their clients and collect information relevant to doing business with them.
The US government has implemented KYC as part of the Bank Secrecy Act and the USA PATRIOT Act. KYC policies are used to prevent identity theft and money laundering, and they are an important tool for disrupting the funding of terrorism. KYC entails much more than just filling out forms; it is a process that touches every aspect of a customer relationship.
Banks that perform KYC monitoring for anti-money laundering (AML) and Counter-Terrorism-Financing (CTF) purposes often use specialised transaction-monitoring software designed to analyse names and monitor trends. This software identifies unusual activity, which is then subject to Enhanced Due Diligence (EDD) processes that use both internal and external sources of information, including the Internet, to determine whether a transaction is suspicious enough that it must be reported to the authorities.
In the US, this would involve filing a Suspicious Activity Report (SAR) with the Financial Crimes Enforcement Network (FinCEN). In the UK, it would require a report to the Serious Organised Crime Agency (SOCA)
Other types of companies also employ Know Your Customer procedures in order to ensure that their agents, consultants, and distributors are not susceptible to bribery. Banks, insurers, and export credit agencies now often ask their customers to provide detailed anti-corruption due-diligence information in order to verify their integrity. Consultancies exist that specialise in Know Your Customer processes in order to help multinational companies and SMEs enter new markets.
One key purpose of KYC controls is to monitor a customer’s transactions and check them against the customer’s recorded profile and the history on the customer’s account(s). Another is to verify that the customer is not on the Office of Foreign Assets Control's Specially Designated Nationals list, or any other such list of known frauds, terrorists, or money launderers.
The Specially Designated Nationals list contains thousands of entries, and it is updated monthly. There are also lists of third-party vendors, which are used to track links between persons considered to be high-risk due to negative media reports or public records concerning them.
Global Credit Solutions (www.gcs-group.com) is recognised as a leading supplier of KYC and due diligence reports.
Article author: Global Solutions
