What are the red flags to look out for during due diligence?

by a searcher from Tennessee Technological University

8 months ago

1 like
137 views
15 comments

professional from Bentley College

It's impossible to list all the red flags that you should look out for. We have a lot of great articles in the DueDilio Knowledge Center that I think would be helpful to answer this question. https://www.duedilio.com/knowledge-center/

8 months ago | like reply | 1 like

intermediary from Yale University - School of Management

Thanks for the tag ^Searchfunder member‌. I like all the comments listed so far. And I am sure that future comments will be truly helpful.

Aside from everyone's unique risk barometer, unavailable information in due diligence is common from Fortune 500 to small family businesses, at least in my experience. The acquirer would then assess the price and value discount from the acquisition.

But to answer your question, a light red flag would be the reason for selling not making sense. When someone gives a reason for selling that doesn't add up... discount the price and value and sharpen your pencils...

Happy acquisitions everyone!

8 months ago | like reply | 0 likes

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