Pre-LOI Financial Due Diligence for Small Business Buyers
September 28, 2025
by a professional from University of Minnesota - Carlson School of Management in Laguna Niguel, CA, USA
Most first-time small business buyers spend too much time chasing bad deals or risk overpaying because they don’t know what matters pre-LOI. This lesson gives you a clear checklist and practical tools to quickly evaluate CIMs, spot risks early, and build confidence in your decisions — helping you save time, avoid costly mistakes, and move closer to owning the right business.
What we'll cover:
* 5 Key Areas Every Small Business Buyer Must Review
Emphasis on 5 areas of financial due diligence to check in every CIM before signing an LOI.
*Spot the Red Flags SMB Buyers Often Miss
Identify inflated SDE, risky customer concentration, and other red flags that derail deals.
*How Addbacks Impact Business Valuation
See how small changes in addbacks flow into SDE and valuation, protecting you from overpaying.
*Why Multiples Flex From Buyer to Buyer
Understand how deal structure, revenue style, and buyer fit shift multiples in real transactions.
More Info:
https://tinyurl.com/44m6nayy
from The University of Michigan in Detroit, MI, USA
in Miami, FL, USA