For those of you who've completed a relatively small transaction ($500K SDE, <$2M purchase price)), how long did your financial due diligence that consists of simple QoE and proof of cash take? Obviously depends on the business but wanted to get a ballpark number, assuming I get the necessary data from the seller reasonably quickly. I think the accounting of the business itself should be pretty straight forward, but one only thing I'm concerned about and want to verify throughly is the seller's personal expenses added back to SDE (there are quite a few items being added back).
Trying to sequence the different parts of due diligence to optimize cost, so wanted to get a rough timeline set to share with the seller and the broker. I figured I could engage the lawyers to draft up Purchase Agreement once I'm comfortable with the financial DD. For example, is 45 days enough as a budget for financial DD?
Thanks!
How long does typical financial due diligence take?
![](https://55550cf88fb9105859d2-ecc273435fde99d2e690dfef78341117.ssl.cf5.rackcdn.com/img/defaultprofile.png)
by an investor from Columbia University - Columbia Business School
More on Searchfunder
Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
167 views
11 comments
Sign in to see all replies.
Create an account.