Скачать или смотреть Financial Due Diligence Buyer’s Guide

What You’ll Learn in This Video

The 5 key components of financial due diligence

How to assess income statements and balance sheets

Why working capital kills more deals than you think

How to verify earnings through quality of earnings and proof of cash

Real stories of deals gone wrong — and how to avoid them

Why This Strategy Works
These frameworks are used by SBA buyers, independent sponsors, and private equity teams.
If you're buying a business, this process helps you:

Avoid inflated earnings

Set a clear working capital peg

Spot hidden liabilities before closing

Timestamps
0:00 – LOI→Close Timeline & Where Diligence Fits
1:06 – Tax & Legal Diligence: Roles & Timing
1:51 – Case Study: Justin’s SBA Acquisition Failure
5:06 – The Five Buckets of Financial Due Diligence
7:11 – Diligence Roadmap: 7-Step Process
11:04 – QoE Timeline: Adjusted EBITDA by Week 3–4
16:14 – Income Statement Review: Margins & Red Flags
21:20 – Balance Sheet Review: AR/AP & Debt-Like Items
25:23 – Working Capital: Biggest Deal Killer (Set It in the LOI)
37:56 – Proof of Cash/Revenue: Bank Tie-Outs

Step-by-Step Breakdown

Step 1: Understand the Deal Timeline
Get a full view of the 90-day window from LOI to close. Know when diligence, legal, tax, and financing come into play.

Step 2: Analyze Financials in Depth
Review profit and loss and balance sheets for patterns, anomalies, and red flags.

Step 3: Verify with Bank Data
Use proof of cash to validate QuickBooks figures against actual deposits and disbursements.

Step 4: Align Working Capital Early
Set expectations with the seller during the LOI stage to avoid closing delays or deal failure.

Step 5: Normalize Earnings with QofE
Identify one-time expenses, discretionary owner costs, and out-of-period items to calculate true adjusted EBITDA.

Final Thoughts and Call to Action
Due diligence isn’t just about checking a box — it’s how smart buyers avoid costly mistakes.
Comment checklist below to receive a free copy of the due diligence template used in real deals.
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