Due Diligence Lessons from a Failed Acquisition with Elliott Holland, Guardian Due Diligence

Описание: A.J.’s recent acquisition deal fell through, but that didn’t stop him from gaining valuable due diligence lessons and best practices involved in buying a business. In this episode, A.J. and Elliott Holland of Guardian Due Diligence, discuss creating a list of specific dealbreakers, the importance of advisory work during the acquisition process, and how to determine whether a particular business is a good fit for you.

If you're looking to acquire a business, this is an episode you won't want to miss. Tune in now for practical tips and expert insights on buying a business!

EPISODE HIGHLIGHTS:
If you are thinking of buying a business, create a list of (very specific) dealbreakers. These are the factors that will cause you to walk away from the deal. An example might be: “I don't feel I can run the business from day one without the seller.” (04:03)
A QoE (Quality of Earnings) is traditionally just a quantitative analysis, but in small-medium business deals, the qualitative components are just as important. In this particular case, the downward trend in the numbers wouldn’t have been a deal breaker if the foundational core of the business had been strong. (15:17)
Don’t underestimate the importance of having an advisor during the acquisition process. The role of an advisor is not to say whether a deal is good or bad but rather to ask you questions that will make you think about whether you feel it is something worth pursuing. (19:49)
Don’t believe everything you are told. Oftentimes, people attribute issues incorrectly. That is why it is so important to have good due diligence on your side. (21:26)
Make sure that the business you buy is a good fit for YOU. There are so many businesses out there you could buy and play some kind of role in, but you need to make sure that it is the role you really want. (28:16)
Just because we are currently in a tougher market doesn’t mean great deals can’t be done; it just means you may need to work a little bit harder, negotiate a bit better, and make sure you are getting updated financials! (43:21)

ABOUT ELLIOTT HOLLAND:
Elliott Holland, “reformed engineer”, the founder and Managing Director of Guardian Due Diligence, is an expert in small and medium-sized business acquisitions. He has over ten years of experience executing middle-market deals, and his company is filling the void of options that exist for smaller acquisitions.

SUBSCRIBE TO THE BEYOND 8 FIGURES PODCAST:
Discover proven business tips and strategies from successful 8-figure entrepreneurs. Don't miss out!

Apple Podcasts: https://apple.co/3MIuZfF
Google Podcasts: https://bit.ly/b8f-google
Spotify: https://spoti.fi/3ks6rf3

If you enjoyed this episode, please leave us a review on your podcast platform of choice. Your feedback helps us reach more people and improve the show.

Apple Podcasts: https://podcasts.apple.com/us/podcast...
Spotify: https://open.spotify.com/show/3ceEng8...
Podchaser: https://www.podchaser.com/podcasts/be...

Have a question, feedback, or suggestion? Post in the comments below!

#DueDiligenceLessons #AcquisitionEntrepreneurship #Beyond8figures