Once an offer is agreed, the deal is not done; it has to survive due diligence. This is where a buyer verifies that the business is what it appears to be, and it is where weak preparation unravels otherwise promising deals. For an FM or technical services business, knowing what diligence examines lets you fix the gaps before a buyer finds them.
Financial and commercial
Expect a detailed look at the quality of earnings: how real and repeatable the profit is, how revenue is split between contracted and one-off, and how concentrated it is among the top clients. Clean management accounts and a defensible maintainable EBITDA make this stage fast; messy numbers make it slow and suspicious.
Operational and technical
Buyers assess whether the business can keep delivering after completion: the strength of the team, key-person risk, the state of processes and systems, and the condition of contracts and client relationships.
Legal, compliance and people
- Customer and supplier contracts, and any change-of-control clauses
- Accreditations, health and safety records and compliance history
- Employment contracts, TUPE considerations and key staff
- Any outstanding disputes or liabilities
The owners who get through diligence smoothly are the ones who prepared as if it were coming, because it always is. Tidy the evidence early and diligence confirms the deal rather than threatening it.
