Buyers: What have you found in due diligence that broke deals?

intermediary profile

November 21, 2023

by an intermediary from California State University, San Bernardino - College of Business and Public Administration in Stratton, CO 80836, USA

I would love to hear your stories and valuable knowledge derived.

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commentor profile
Reply by a searcher
from Indian School of Business in Raleigh, NC, USA
Some of the more serious things I've found include lack of any data whatsoever on important areas like inventory, huge customer advances that the seller did not want to compensate the buyer for, no sales team (all driven by the owner), seller has a C-corp and hasn't planned for taxes/will bail later, hidden customer concentration
commentor profile
Reply by a searcher
from University of Virginia in Richmond, VA, USA
Found a construction company with $1.5MM in receivables for sale for $750k. Found that the catch was the bonding. I’d have personally been liable for its projects getting completely at the time and price that they’re signed for and if someone messed up estimation, they’d have come after all my personal assets.
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