Why Due Diligence Can Make or Break a Business Sale

What should you really check before buying a business?In this episode of Happy Buyer, Happy Seller, Shaun Thornton sits down with CPA and entrepreneur Adrienne Brace to break down the critical role of due diligence in buying and selling a business.They discuss how buyers can verify financial data, what red flags to look for, and why relying on profit and loss statements alone can lead to costly mistakes. Adrienne explains how professional due diligence works, including how to cross-check financials using bank statements, tax returns, and multiple data sources.The conversation also covers tax implications when selling a business, including capital gains, C-corporations, and how seller financing (promissory notes and earn-outs) can impact when taxes are paid.If you're buying, selling, or planning your exit, this episode provides practical insights that can help you avoid major financial mistakes and make smarter decisions.Subscribe for more insights on buying businesses, selling businesses, and building successful companies.📌Connect or follow Shaun Thornton 👉 LinkedIn: https://www.linkedin.com/in/shaunthorntonbusinessbroker/ 👉 Facebook: https://www.facebook.com/ShaunThorntonBusinessBroker/ 👉 YouTube: https://www.youtube.com/@HappyBuyerHappySellerPodcast 00:00 Introduction to the Podcast01:20 Meet Adrienne Brace03:00 What Infinity CPA Does05:20 Why Accounting Is the Language of Business07:30 What Is Due Diligence?10:00 What Documents Are Required13:00 How Due Diligence Actually Works16:30 Red Flags and Warning Signs20:00 Verifying Revenue and Bank Deposits23:00 Tax Returns vs Profit & Loss25:30 Why Buyers Should Use a CPA27:30 Tax Implications of Selling a Business30:00 Seller Financing & Tax Deferral32:30 Preparing a Business for Sale33:40 Final Advice for Buyers and Sellers👍 If you found this episode helpful, subscribe and share it with a business owner, buyer, or entrepreneur who could benefit from understanding due diligence and the financial side of buying or selling a business.#DueDiligence #BuyingABusiness #BusinessAcquisition #BusinessBroker #Entrepreneurship #BusinessSale #SmallBusiness #FinancialAnalysis #BusinessTips #TaxStrategy #CPAAdvice #BusinessGrowth #EntrepreneurAdvice