3rd party diligence support for a smaller deal (under $300k purchase price)

by a searcher from The University of Chicago - Booth School of Business

1 week ago

Hi all - want to gather some popular opinions on how much to invest into diligence for a small sized transaction. 

Business is B2B software and customers are either on monthly/annual subscription basis with a few larger clients that pay by pay-per-use model. Not too many expenses (i.e. no marketing cost, 1 contractor HC). 

Entering into LOI and have a fast 4-week closing timeline. First time acquisition (minus a much smaller one in the past that didn't require diligence). Current thinking is to perform financial diligence by ourselves (from finance background). 

Main question is around what type of legal diligence to engage and how much to budget for that? Any other types of diligence I'm missing for this size of transaction? Thanks in advance!

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searcher from The University of Chicago - Booth School of Business

happy to offer services - my background in M&A plus working in leadership of large companies can support financial due diligence and operational due diligence steps

5 days ago | like reply | 0 likes

professional from University of Notre Dame

Hi ^Searchfunder member‌ - would be happy to connect. While this deal is a bit on the small side for me, my colleague specializes in sub $1M deals and offers an unbeatable fee structure (no retainer, no milestone payments and all fees payable at closing). Our firm has a ton of experience working with searchers and Independent sponsors. Shoot me a DM or email --@----.com and I'd be happy to make the intro.

5 days ago | like reply | 0 likes

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