M&A Talk: #1 Podcast on Selling a Business For New Sellers: Expert Advice on Preparing for Due Diligence in Middle-Market M&A
Dec 15, 2023
Learn about the importance of preparing for due diligence in middle-market M&A deals. Discover the differences in how various buyers handle due diligence, the key documents needed, and the need for speed. Understand the emotional struggles faced by sellers during this high-stakes process and the importance of mental well-being. Gain insights on essential steps for sellers to navigate the due diligence stage effectively.
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Due Diligence Role
- Due diligence is the final step after signing a non-binding Letter of Intent (LOI).
- It allows the buyer to deeply investigate and validate their assumptions about the business.
Financial Document Mix-up
- A seller once sent tax documents instead of profit and loss statements, complicating financial review.
- This made it difficult to piece together the financial history of a 14-year-old business.
Stay Organized & Manage Requests
- Sellers must keep their virtual data rooms organized with properly labeled documents.
- They should also coordinate buyers' work streams to prevent repetitive and disorganized requests.