Category: Due Diligence Tips

Why the Bank’s Due Diligence Shouldn’t Replace Yours

If you’re financing your deal with an SBA loan or working with a lender to close a business acquisition, chances are you’ve heard something along the lines of: “The bank will do their own due diligence.” That’s true. But it’s also incomplete. Because here’s the catch: a bank’s due diligence isn’t designed to protect you. […]

What Happens After a Quality of Earnings Report?

For many first-time or early-stage acquirers, getting the Quality of Earnings (QoE) report feels like a big milestone—and it is. But it’s also the beginning of the most important conversations in your deal process. If you’re holding a fresh QoE and wondering, “Now what?”—this guide is for you. Let’s walk through what you should do […]

Broker vs. Private Sale: What to Expect (For Buyers and Sellers)

When you’re getting ready to buy or sell a small business, one of the first decisions you’ll face is how to approach the deal: work with a broker or go the private route? Both options can work. But the process, the people involved, and the potential pitfalls vary significantly depending on the path you take. […]

How a Skilled Due Diligence Team Protects Your Bottom Line

When evaluating a potential acquisition, having a clear and accurate understanding of the business is crucial. Without the right expertise, it’s easy to overlook red flags, miscalculate risks, or even overpay for a business that isn’t as strong as it appears. A solid due diligence team ensures you get the full picture, protecting you from […]

Understanding Add-Backs and How They Impact a Deal

When evaluating a business for acquisition, one of the most critical aspects of financial due diligence is understanding add-backs. These adjustments can make a business look more profitable than it actually is – or, in some cases, reveal hidden value. Either way, if you don’t know how to analyze add-backs properly, you could end up […]

What to Look Out for Before Submitting an LOI

When evaluating a business acquisition, the period before submitting a Letter of Intent (LOI) is critical. This is your chance to conduct high-level due diligence, assess deal viability, and ensure you’re not about to buy a business held together by duct tape and wishful thinking. Buyers at all levels should approach this stage with a […]

Why Some Deals Fall Apart in Due Diligence and How to Keep Yours on Track

Mergers and acquisitions (M&A) are high-stakes ventures, with nearly half of all deals failing before closing. Research shows that up to 50% of M&A transactions don’t make it to the finish line. The biggest stumbling block? Due diligence. This phase is where financial, legal, and operational realities come to light sometimes derailing deals entirely. But […]

3 Ways to Identify an Exceptional SMB Due Diligence Provider

When diving into the world of small and medium-sized business (SMB) acquisitions, one of the most crucial steps is selecting the right due diligence provider. Their insights and analysis can make or break a deal, and finding someone exceptional can greatly influence the outcome. So, how do you spot a truly outstanding due diligence provider […]

20 Technical Terms Worth Knowing for SaaS Buyers

Venturing into the world of SaaS business acquisitions can be thrilling yet challenging, especially for those who are not technically inclined. One of the most daunting aspects is the specialized technical jargon that comes with the territory. Understanding these terms is vital as they play a significant role in the software development lifecycle and can […]

19 Terms You Need to Know Before Starting Your SMB Search

Embarking on the journey to buy a small to mid-sized business (SMB) can be both exciting and daunting. One of the first hurdles you’ll encounter is the specialized terminology used in the industry. Understanding these terms is crucial as it can significantly impact your decision-making process and overall experience. To help you feel more confident […]