Expert Advice on Preparing for Due Diligence in Middle-Market M&A

About the Episode

The due diligence process is stressful and has high stakes for both sides of any acquisition. Jonathan Wilson returns to M&A Talk to highlight the importance of preparing for the due diligence stage and what to expect during this period of a business sale. He discusses the differences between how various types of buyers handle due diligence, gives an overview of what documents are needed, what to look out for, the need for speed, and how to prepare for due diligence from the very beginning of the sale process.

Listen on Apple Podcasts | Listen on Spotify | Listen on Deezer | Listen on Stitcher | Listen on Google Podcasts | Listen on TuneIn

“The most important advice to sellers is to find an advisor who knows what they’re talking about. Make sure that you are prepared from both a mental standpoint and a professional standpoint to sell your business. And then also, make sure you understand what your business is worth because those three things together will help set your expectations.” .

Jonathan Wilson

In this Episode

2:44 What role does due diligence have in the sale process for sellers in the lower middle market?
4:06 What percentage of deals die in the due diligence stage?
9:10 What’s the workstream in the due diligence process?
12:52 Does the extent of due diligence change based on the type of buyer? How do different buyers conduct due diligence?
13:25 PE firms
14:29 Strategic buyers
15:59 Family offices
16:25 Individual buyers
18:38 How should a seller prepare for due diligence?
19:55 How many documents are on a due diligence checklist?
22:06 What is confirmatory due diligence?
23:52 How long does it take a seller to prepare for due diligence?
27:27 What are the objectives of due diligence for the buyer?
30:13 What role does integration play in the due diligence process?
32:48 What is the due diligence process like, and how emotional is it for sellers?
38:48 Why do sellers come into this sales process so unprepared?
41:08 What perspective does the buyer have on the whole acquisition process?
42:55 How much of a difference does preparation make?
48:09 What is the most important piece of advice for sellers?

Learn More About This Episode

Listen to Other Episodes

Resources Mentioned in This Episode

Terms Mentioned in This Episode

  • QoE: quality of earnings report
  • PE: private equity firms 

Meet Our Guest

Jonathan Wilson

Jonathan Wilson

Value Creation Professional

Jonathan Wilson is a Value Creation professional focused on organic and inorganic value creation for start-ups, fintech, and more traditional organizations. In 2017, Jonathan founded Dubb Value Creation, a boutique consulting firm based in West Hollywood, California, where he serves as the President and Chief Value Creator. For almost 20 years, Jonathan has worked exclusively with Fortune 500 companies, developing and executing both inorganic growth initiatives with M&A acquisitions and divestitures and organic growth initiatives to enhance profitability through increased revenue and realized cost savings. Jonathan holds an MBA from the UCLA Anderson School of Management and a BS in Chemical Engineering from the University of California San Diego.

Location Location: Los Angeles, California (West Hollywood)

Selling Your Business?

Work with an industry leader that gets you results.

We invested over a decade perfecting every step of the process. The result is a method proven to reduce your risk and maximize your price.

View Our Process Now

Any questions about selling your business?