Acquiring Minds What You Don’t Understand About Buying a Small Business
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Oct 7, 2021 Elliott Holland, a due diligence expert and founder of Guardian Due Diligence, shares his invaluable insights on acquiring small businesses. He highlights the pitfalls of seeking perfection in Letters of Intent and the crucial role of post-LOI information. Elliott emphasizes that early acquisition data can be misleading, and trust issues with sellers are common. He advocates for the importance of professional guidance and practical experience in navigating the complexities of financial analysis and broker influence during the acquisition process.
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Write the LOI Quickly
- Write the letter of intent (LOI) quickly and don't delay due to fear of imperfection.
- Sending the LOI is essential to start learning and progressing in deal-making.
Success Requires Many Deals
- Success depends on doing many deals, including some failures.
- Treat failed LOIs as learning steps toward eventual success.
Pre-LOI Info Is About 40% Off
- Deal information pre-LOI is often inaccurate by about 40%, mostly inflated by sellers or brokers.
- Buyers should expect to adjust numbers post-LOI rather than reject deals immediately.