Resources for/experiences with informal/poorly documented businesses?

by a searcher from Brown University

6 months ago

Obviously, cautionary tales abound here, but for the purposes of the conversation, assume the best intentions (if not the best practices). Has anyone looked at the space or read about it?

0 likes
42 views
2 comments

searcher from Brown University

Thanks David - very helpful. On deals like this - micro, informal - is there a rule of thumb for hours/cost of DD vs deal size?

3 months ago | like reply | 0 likes

searcher from Colgate University

Pretty common especially in the "main street" end of the market. Generally seller will be expected to put in the legwork to get things documented and pulled together, as a prerequisite for beginning marketing the business for sale. If you want an edge in the deal, but also to take necessary risk mitigation steps, I might help the seller with some of that legwork, in exchange for ~3 months of exclusivity to submit an LOI. It will help them do what's necessary to ever sell their business, while giving you first refusal and probably a bit of preliminary DD along the way.

6 months 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

What are market terms for Seller Notes?

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

Sorry, but you are a broker's worst nightmare ... and how to fix it

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.