Under LOI

by a searcher from The University of Arizona - Eller College of Management

9 months ago

Finally after about 8 months of searching I’m under LOI!  The target is a final mile produce distribution company, focused mainly on restaurants and small grocery (think bodegas).  This target has some strong affinities to my career background, even my prior business that I owned which was a food service and Vending company.

Im curious how others have dealt with the outlay of the DD process.  I have my deal team in place, but how did you sequence you legal and financial DD?  I really don’t want to outlay about 30k on a deal that could go sideways early on, and interested in the community’s thoughts and experiences.

thanks

1 like
324 views
27 comments

searcher from Harvard University - Harvard Business School

g luck

8 months ago | like reply | 0 likes

searcher from The University of Arizona - Eller College of Management

Well, just in case anyone is interested, deal died right after I paid for DD, never actually started DD. Went out and visited and was getting the data box info set up for DD, selller ended up having two tax returns, one sent to the IRS and one he was using for selling the business. I also couldn’t hit the numbers for income on the bank statements, etc. I think this post says anything, it is that your gut instincts are better than you think.

8 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

Self Funded Acquisition: A few Things I Learned

Examples of self-funded searcher websites

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

6-7x for a Self-funded Search Deal?

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.