What are some things to consider when going through due diligence?

searcher profile

March 09, 2022

by a searcher from Georgia Institute of Technology in Atlanta, GA, USA

Trying to start to build my checklist for due diligence, since I have never purchased a company and I was wondering how individuals have done this in the past? Are there firms for small business that help with this? I would imagine it is different depending on your industry\sector? If it helps... I am targeting SaaS or e-commerce.

1
17
132
Replies
17
commentor profile
Reply by an intermediary
from The University of Chicago in Chicago, IL, USA
There are at least 3 categories of DD. 1) Accounting DD, 2) legal DD, 3) Business DD,
1) Accounting DD: Most people focus on this. QoE is important, but that is just one element. Financials contain a lot more information about the business and operation.
2) Legal DD: Very important for risk mitigation.
3) Business DD: The most important. Gets least attention by new buyers and MBAs. Knowing customers names and talking to them seems to get priority and over-focus, instead of "understanding" the business, the industry and the "why" side of the business existence.
commentor profile
Reply by a professional
from Bentley College in Miami, FL, USA
Hi Rick - those are great questions.Yes, there are firms that help with due diligence.I run DueDilio which is an expert network focused on M&A.Our nework is made up of these firms and individuals.We connect business buyers with quality pre-vetted due diligence service providers.https://www.duedilio.com
commentor profile
+15 more replies.
Join the discussion