Deal Viability Review
Know what you're buying, before you sign anything.
A pre-due-diligence risk screen for businesses acquisitions between $500K â $20M. We identify the red flags early, so you can make an informed decision before you spend on formal due diligence for a business.
What's covered
Customer concentration
How much revenue sits with the top few customers, and what happens to the business if one walks.
Owner dependency
What the current owner does day to day, and whether the business runs, or stalls, without them.
Earnings quality
Normalised EBITDA, with add-backs tested â so the number you're pricing off actually holds up.
Lease and premises risk
Lease term, renewal terms, and what happens to the business if the premises aren't secure long-term.
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.
Working capital and cash conversion
How cash actually moves through the business, and whether reported profit shows up as cash.
Finance/ fundability check
A check on whether the deal is fundable at all. It's best to identify this earlier than after the offer is made.
Red-flag summary and recommendation
A clear call on whether the deal is worth pursuing to full due diligence, and what to check first if it is.
How it works.
Send us the listing
Share the information memorandum or listing pack for the business you're considering.We screen it
We work through all eight areas above and build out the report.You get a clear answer
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 a Deal Viability Review on your next listing.
Get in touch with us and we'll tell you whether it's worth taking further.
FAQs
Does the 'Debt Viability Review (DVR)' replace formal due diligence?
No. The DVR is a risk screening exercise we run before you spend time, money and effort doing full due diligence on a business that was never going to work.
How long does a DVR take?
Most reviews 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 gaps gets flagged as not disclosed, with exactly what to request from the vendor or business broker before your proceed further.
What size deals is this for?
We work with business acquisitions between $500Kâ$20M.
How much does a DVR cost?
POA - the fee depends on deal size and complexity. Get in touch with the business details/ IM and we can quote from there.