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ACQUISITION ASSESSMENT

Is this the right business?
Find out before you spend on due diligence.

When buying a business, due diligence can cost thousands in accounting and legal fees, and it's money lost if the business turns out to be the wrong one.

Our Acquisition Assessment is a pre-due diligence screening for business acquisitions of $1M to $20M.

We test the earnings, flag the risks and check whether the deal can be financed, so you only commit to due diligence on a business worth pursuing. You receive a written report with our findings.

Make an informed decision before moving forward.

What the Acquisition Assessment covers.

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Customer concentration
How much revenue sits with the top few customers, and what happens to the business if one walks.

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Owner dependency
What the current owner does day to day, and whether the business runs, or stalls, without them.

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Earnings quality
Normalised EBITDA, with add-backs tested — so the number you're pricing off actually holds up.

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Lease and premises risk
Lease term, renewal terms, and what happens to the business if the premises aren't secure long-term.

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Key person and staff retention
Who else the business relies on beyond the owner, and the risk of losing them through a change of hands.

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Working capital and cash conversion
How cash actually moves through the business, and whether reported profit shows up as cash.

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Fundability check
Whether the deal can support the capital structure it needs, before an offer is made.

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Red-flag summary and recommendations
A written summary of the red flags and our recommendations, drawn from the information memorandum, financials and supporting documents.

How it works.

  1. Share the opportunity.
    Send us the information memorandum and any financials you've received. 

  2. We assess it.
    We work through all eight areas above and build out the report.

  3. You get a clear view.
    A written report telling you whether it's worth pursuing, and where to focus if you go further.

What this isn't:  a substitute for full legal and financial due diligence. It's the screen you run before committing to that spend.

If the IM is thin on a section: we don't guess. We mark it as not disclosed and tell you exactly what to request from the seller or broker before you go further, financials, lease terms, or whatever else the IM didn't cover.

Get an assessment of the business you're interested in buying, before spending thousands on due diligence.

Get in touch with us and we'll tell you whether it's worth taking further.

OR book a consult with us!

FAQs

What is a pre-due diligence assessment?

A focused review of a business before you commit to full due diligence. It tests the earnings, flags the main risks and checks whether the deal can carry the capital it needs, so you only spend on due diligence for a business worth pursuing.

Does the Acquisition Assessment replace formal due diligence?

No. The Acquisition Assessment is a pre-due diligence screening that tells you whether a business acquisition is worth the time and cost of full due diligence.

How long does it take?

Most assessments can be completed within 48-hours of receiving all the information we require.

What happens if the Information Memorandum (IM) doesn't cover everything?

We don't skip or guess it. Any gap gets flagged as not disclosed, with exactly what to request from the vendor or business broker before you proceed further.

What size deals is this for?

Business acquisitions between $1M and $20M.

How much does it cost?

Fees are quoted per engagement, based on deal size and complexity. Share the business details and we'll quote from there.