Practical guide / Free to read
Keep claims, evidence, and questions separate.
Make a useful record of what you have heard, what you have seen, and what still needs checking.
A simple evidence note you can take into a conversation with the seller or an appropriate adviser.
Give each important claim its own note
Start with one statement you might rely on: a description of repeat customers, working hours, a process, or a supplier arrangement. Record what was said and where it came from.
The SBA recommends a thorough investigation of a business and identifies roles for attorneys and accountants. The note structure here helps organize questions for that work; it is not a completed due-diligence review.
Background: U.S. SBA: Investigating an existing business
Use four simple columns
A document can answer one question while leaving another open. Name the part that it supports rather than marking the whole subject as verified. Avoid collecting customer or employee details you do not need; agree appropriate access with the seller.
- Claim: what have I been told?
- Material reviewed: what did I actually see, when, and for which period?
- Open question: what is missing, unclear, or inconsistent?
- Next check: who could help clarify it, and what should I ask for?
Carry unresolved items forward
Give unresolved items a place in the next conversation. If someone cannot answer a question, record that as unresolved rather than filling the gap with your preferred explanation.
Questions about contracts, financial statements, tax, or the terms of a purchase need the relevant professional review. This guide organizes the discussion; it does not judge a price, recommend a deal, or certify the evidence.
Try it in your own situation
Prepare one evidence note
- Pick one claim that matters to your next decision.
- Write its source and the exact question it raises for you.
- List what you have reviewed without overstating what it proves.
- Name the next person, document, or explanation needed.
Sources and further reading
Original Brass Charter examples and exercises, with background reading from the sources below.
- U.S. SBA: Investigating an existing business
Background on investigating a purchase and obtaining legal and accounting help. The four-column note is a Brass Charter working method.
Outside learning & help.
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