Is a 30 Day Due Diligence Period Possible?

by a searcher

3 years ago

My search fund is bidding against other buyers who are larger and more financially resourced.  The seller has told us that our ability to close the deal really fast would be highly competitive.  They are suggesting 30 days for due diligence and closing.  This is a business valued at $25MM.  Has anyone ever done this before?  Is it possible?  I may need an endless supply of red bull.

6 likes
903 views
110 comments

investor from Columbia University

Answer: "Yes, but###-###-#### in nearly all cases no." This is often a red flag, but isn't necessarily one. I'd just be very careful in DD. If they have audited financials and some kind of QOE data ready-to-go, it's possible. But I'd want to drill down into "why the hurry." I've certainly seen businesses where the founder/CEO unexpectedly dies or becomes disabled, and they need to move fast to ensure continuity. And I could imagine other scenarios. But, obviously, but many sellers will push a closing timetable because they expect to lose customers, become non-compliant with standards, or are facing other negative developments or outright manipulation of financial results. Proceed with caution.

1 month ago | like reply | 0 likes

intermediary from University of San Diego

Way to short.

1 month ago | like reply | 0 likes

More on Searchfunder

Just Closed on My First Deal! Reflections and Takeaways for other Searchers

45,152 transactions are available on Searchfunder (now searchable by keyword)

Now everyone has unlimited IBISWorld access

Family office looking for traditional searchers

Examples of self-funded searcher websites

Investor seeking Self-Funded Search Deals

What are market terms for Seller Notes?

2 Best Ways To Find Motivated Sellers, Off-Market Deals

Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.

We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.