What is business diligence?

• Business due diligence is the process of combining data analysis with business model and industry knowledge to assess whether a business is a good investment or not. Business due diligence will help to confirm what the seller has told you using data, or help to identify risks or other opportunities for growth. You wouldn’t buy a house without having an expert inspector verify everything the real estate agent and seller have said is accurate, right?

What industries do you work with?

• We work with nearly any industry. We have experience across manufacturing, home services (HVAC, landscaping, pest, etc.), automotive, retail, aerospace & defense, software, business services, consumer products, industrial, transportation & logistics, distribution, etc.

How is this different from a QoE?

• A Quality of Earnings report is done by a CPA and focuses on the financial statements and confirms the dollars and cents are correct. In small businesses, the financial data is often limited to tax returns, which typically don’t have the level of detail needed to fully understand the business. Business diligence focuses on data trends, product, customer and/or service concentrations or opportunities, and seeks to answer the ultimate question of “is this a good business?”

Will this slow my deal down?

• Absolutely not. We work hard and fast to SPEED UP your deal timeline. Outsource your diligence to us so you can focus on the one million other tasks on your plate!

Can lenders use your report?

• Absolutely. Our report can be shared with lenders, lawyers, business partners, etc. Lenders love when clients hire TDP, as it adds an extra layer of sophistication and comfort that The Pros have reviewed the deal.

What types of businesses do you work with

• We are well versed in nearly all business models and sizes. Franchisees, franchisors, products, services, etc. We primarily focus on SMB and lower middle market sized transactions, but can custom tailor an engagement that works for your deal size!

When should I engage you?

• Pre- or Post-LOI. You can retain us to help you evaluate businesses you’re looking at pre-LOI, or wait until you’ve got an LOI signed and bring us in to look under the hood as part of your path to closing. We are flexible! Hint: Sellers and brokers actually view it as a POSITIVE when a buyer hires TDP, as it means you are serious about understanding the business and getting the deal closed efficiently.