Minimize Due Diligence Costs for Smaller Deals ($100K-$200K SDE)?

by a searcher

1 year ago

I'm looking at smaller deals in the Southeast and these are typically $1o0K -$200K in EBITDA and also only $300K-$500K in valuations. These are franchise and non-franchise independent businesses. I see typical due diligence services (QoE, legal DD) etc of the order of $20K-$50K each. While those fee ranges can make sense for bigger deals, it can have a big impact on the economics with such high closing costs for smaller deals. 

Do I have any options for a more reasonable and simpler due diligence services for smaller deals? Has anyone here closed such very small deals, and if yes, how did you manage the due diligence services?

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professional from University of South Florida

We can flux the scope up and down depending on the needs/risk profile of each deal. Happy to schedule a call to discuss how we can help! Shoot me a note @ --@----.com

1 year ago | like reply | 0 likes

searcher from St. Francis Xavier University

If using a big4 national accounting firm you can expect to be around 100k in Canada. Although, look around for some small boutique shops stood-up by an Ex-Big4 Partners and you can probably get it for around 20-30k. If you're getting financing, you'll mostly need a branded report for your bank.

1 year ago | like reply | 0 likes

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