Issues uncovered in diligence that changed your view of the deal?
During QoE and diligence, what was one issue you uncovered that materially changed your view of the deal (positive or negative)? How early could you have identified it?
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by an member
from Case Western Reserve University
in Cleveland, OH, USA
in Cleveland, OH, USA
1mo ago
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by a searcher
3w ago
from Boston College in Denver, CO, USA
from Boston College in Denver, CO, USA
Understanding the nature of add backs early is really helpful. There are clear add backs that will kill a deal once it get's to the lending side. Also getting a clear sense of owner dependencies and the ability to replace those (without replacing cost neccesarily)
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by a searcher
1d ago
from Rice University in Los Angeles, CA, USA
from Rice University in Los Angeles, CA, USA
These red flags didn’t happen to me personally, but they didn’t just kill the deal - they killed the business because they WEREN’T caught during during diligence: the seller had been paying employees bonuses under-the-table, the company had been doing unlicensed plumbing work, and an employee had been running a competing business on the side that was siphoning major customers from the company.
redacted
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