Giving Diligence Its Due

"Those who shun helpful guides and resources usually wind up making horrible decisions," Parker cautions.

A Few Good Professionals

It's also important for both seller and buyer to put together a strong team, which includes transaction attorneys to do the deal properly, tax specialists, investment bankers representing the seller and a due diligence team, whether that be a hired group or a bunch of your buddies and co-workers.

When possible, engage people who are familiar with the industry and business size.

Lastly, keep your team informed. "Don't wait until the last minute to tell your accountant about the start date of the due diligence," says Parker.

Attorneys and accountants can't do all the work, but "with experienced professionals and our checklists and guides, you can do a flawless job," Parker says.

Finally, Parker advises sellers to avoid hiding anything, and to be sure to assemble all the documentation and information they feel the buyer would want to know.

"Small-business deals rarely happen when there's a lack of trust between the parties," says Parker. "You can ruin that bond very quickly." The seller should do proper background checks on buyers as well, especially if they are financing any part of the sale.

Ferraro warns both buyer and seller against complacency at any point of the due diligence processes.

"If your life savings are tied up in a $10 million sale of your business, the cost to do it properly is pretty inexpensive insurance."