The financial review need not be complicated, but the process does generate questions from buyers and sellers. Some typical questions from buyers are"

1. What is it? You have the opportunity to check out the books and records of the business and verify the information that you have already seen and heard. You may also have additional questions for the seller. If you are satisfied with the information you see, you release the financial contingency and proceed to the next step in your purchase of the business.

2. How long does it take? It's up to you. Many business can be checked out in one meeting. More complex businesses can take longer.

3. What if I find something I don't like? The contingencies in the offer have to be met. If not, you have the right to make a different offer, cancel your offer and get your earnest money refunded, or look at another business.

4. Why not do the financial review before I make an offer? Some buyers have expressed a desire to perform a detailed financial audit before making an offer. Later they found that the audit didn't replace the need to be comfortable with the business and be truly interested in it. They wasted a lot of time and money analyzing the books, only to find that they couldn't agree with the seller on price and terms, or that the type of business just didn't suit them.

We developed the financial review contingency as a compromise to bridge the gap between the buyer's concerns and the seller's needs. We understand the buyer's need to verify the books before buying the business. We also know that it could damage the seller to have confidential information released to strangers or potential competitors. By using the financial review contingency, a buyer can make an offer in perfect safety and the seller is assured that he is dealing with a serious party.