This buyer heard "marketing agency" and "recurring revenue" and his brain shut off. The churn rate was a flashing red light — the seller was replacing customers faster than a revolving door — and nobody bothered to look. ►EXECUTIVE SUMMARY 1) "RECURRING REVENUE" IS THE MOST DANGEROUS PHRASE IN DEAL DILIGENCE: This buyer heard "marketing agency" and "recurring revenue" and his brain shut off. The churn rate was a flashing red light — the seller was replacing customers faster than a revolving door — and nobody bothered to look. 2) OVERCONFIDENCE IS THE #1 FRAUD ACCELERANT: Smart, successful operators move fast because speed works in their domain. In M&A, that same instinct gets you a signed purchase agreement with a personal guarantee on a deal that was dead on arrival. Every fraud victim Elliott's seen looks exactly the same. 3) THE SELLER DELETED THE INVOICES — 80% OF REVENUE VANISHED: This wasn't a gray area. The seller actively concealed churn and manufactured the appearance of stable recurring revenue. The buyer checked boxes — but checking boxes without domain expertise is just expensive theater. 4) THE $0 EXPERT PROBLEM WILL COST YOU EVERYTHING: DIY deal searches sound fun until you're naked in the room with no one who actually knows what they're looking at. The question was never about the advisory fee. It was: why was there no expert in the room?