“While it seems comprehensive and challenging, the financial due diligence process becomes manageable with experience. I’ve been involved with over 75 transactions throughout my career, and I can attest to its extensive nature. But with preparation and aligning yourself with the professionals familiar with the space and who have worked on these transactions, there should be no problem completing the transaction, and everyone is happy walking away from it.” – Patrick O’Connell
Guest Profile
Patrick O’Connell is the Managing Director of O’Connell Advisory Group LLC, a leading consulting firm specializing in M&A transactions, buy and sell-side advisory, strategic advisory, post-merger integration, fractional CFO services, and deal readiness. The firm’s goal is to empower entrepreneurs, private equity firms, family offices, and private investors to achieve their strategic and financial objectives.
Prior to founding O’Connell Advisory Group, Patrick worked in two top-25 US-based transaction advisory and CPA firms, where he collaborated with clients in the Washington D.C. Metro Area. Patrick holds an active CPA license and is a member of the Alliance of Merger & Acquisition Advisors. His academic background includes a Master of Accounting degree and a Bachelor’s degree in Business Administration from James Madison University.
Topics Covered
- What’s the biggest mistake that sellers make from a financial standpoint in preparing or not preparing their company for sale? [2:14]
- What’s involved in financial due diligence (FDD)? [3:25]
- Are there other common mistakes sellers make when preparing for their business to be sold? [4:47]
- How extensive is the FDD process, and how many people are involved? [8:05]
- What is on a financial due diligence request list? [10:35]
- How often are issues uncovered during diligence? What are the most common problems? [14:06]
- What does a seller need to do to prepare their company for sale from a financial perspective? [17:20]
- Is it necessary to have a sell-side Q of E analysis done? [19:27]
- What else can a seller do to prepare their company for sale? [24:02]
- How does financial diligence fit into the overall diligence process? [26:06]
- Advice to potential sellers [28:33]
Learn More
Resources Mentioned
Listen to Other Episodes
Acronyms or Terms Used in This Episode
- FDD: Financial due diligence
- LOI: Letter of intent
- QoE: Quality of earnings
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