- Buyers Guide for conducting management calls with Sellers / Owners in SMB Acquisitions - my detailed agenda:
- 1. Brief Overview of the Business History
- · Company Background / Management History
- - Provide a general History of the Company and any recent or key inflection points.
- · Discuss Primary Revenue Streams
- · So how's the business doing today?
- 2. Management Team / Owner and Employee Structure
- · Owner Roles in Day-to-Day Operations
- · Accounting Team: Overview, Responsibilities, and Day-to-Day Bookkeeping
- · Role of CPA?
- · Other Key Personnel, Significant Recent Changes in Management, and Key Departures
- 3. Revenue & Accounts Receivable (AR)
- • Discuss Top Customers
- • Any significant New or Lost Customers in the Last Three Years?
- • How do you account for Sales Rebates/ Discounts?
- • Accounts Receivables: How are customer collections?
- • Discuss Customer Payment Terms
- 4. Employee Matters
- • Does the Company offer Benefits? (ie. Health, Dental 401K)
- • Are EE's W-2 or do you use 1099 workers?
- • Any Bonus/Commission Plans?
- • Any Severance Payments or One-Time Bonuses in the Last###-###-#### Months?
- 5. Property & Equipment (PP&E)
- • Major Additions & Retirements in the Last Three Fiscal Years
- • Any expected Capital Expenditures need to support the business in the Next###-###-#### Months?
- 6. Vendor Matters
- • Key Vendor Relationships and Payment Terms
- • Contractual Agreements with Vendors
- • Rebate Programs Offered by Vendors
- • What are Vendor payment terms? ie. DPO trends
- 7. Additional Questions & Other matters Part 1:
- • Pending or Threatened Litigation?
- • Related Party Transactions?
- • Any Changes in Contracts or Relationships expected in the next 3-12 months?
- 8. Additional Questions & Other matters Part 2:
- • Any one time revenue or expenses?
- • Did the company pay for any personal / owner expenses which were not business related?
- 9. Last note on the importance of management calls
- - Every acquisition must have at least 1 in person or zoom management call.
- - Why? Often these calls uncover material items never mentioned in the CIM or company provided information.
- 10. What other questions do you ask owners?
Drop them in comments below
full post here
https://www.linkedin.com/posts/patrick-o-connell-3b235177_buyers-guide-for-conducting-management-activity-7168692819606376449-MPLw?utm_source=share&utm_medium=member_desktop
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