Define the objective
Define the industry, location, size, cash flow, owner role and purchase capacity that fit the buyer.
- Write the desired outcome
- Set financial limits
- Identify deal breakers
Verify the evidence
Review financial, legal, tax, customer, employee, operational and technology information. Test important claims independently.
- Reconcile financial records
- Assess owner dependence
- Review customer concentration
Plan the decision and transition
Compare complete terms, downside scenarios, responsibilities and post closing requirements before committing.
- Use independent advisers
- Document material decisions
- Prepare a transition plan
