The ASE Fleet's Weekly Take Off 26
Due Diligence That's So Easy A Cave Man Could Do It
Hello Freinds!
Here’s our internal due diligence checklist; these 36 items will let you make a quick yes or no decision on an acquisition target.
Mandatory Requirements
1. Number of employees (at least 10):
2. Years in business:
3. Location:
4. Revenue ($10M is ideal):
5. Gross Profit:
6. EBITDA/SDE (20%+ is healthy):
7. Cash Flow:
8. Desired multiple (1-4 is best):
9. Asking Price: ($)
10. Cash on hand: ($)
11. Acct. Receivable: ($)
12. Note Receivable: ($)
13. Securities: ($)
14. Raw Materials: ($)
15. Work in Process: ($)
16. Inventory: ($)
17. FF&E: ($)
18. Vehicles: ($)
19. Real Estate: ($)
20. Sales: ($)
21. ARR: ($)
22. Last 4 years’ P&Ls, Cashflow Statements, and Balance Sheets.
23. Set Planned Exit Date:
Good To Know
1. Tech Stack?
2. Growth Lifecycle?
3. Moat (Certifications/IP/Tech/Sticky Contracts)?
4. Culture (For example, team focused vs lone wolfs), and core values?
5. Market Cyclicality?
6. Soft Assets?
7. Asset Marketability?
8. Supply/Demand Risk?
9. WhatSocio-Political Risk?
10. Capacity w/o Capex?
11. Reason for selling?
12. Is it off market?
What is the seller going to do with their exit proceeds?
Meme Of The Week
Posts Of The Week
Merry Christmas from GWT. And hopefully, a merry business exit in 2023 too!
We're investing in IT-centric SaaS, Managed Service Providers (MSPs), Fiber, Telecommunications, Data Centers, and IT-centric E-Learning companies to see them succeed for years to come.
Caution equipment trees found on the premise during due diligence may or may not lower your valuation
That last line was a bit of a joke, so don't byte us for it!
https://www.greatwesterntechnologies.com/
Deals Of The Week
Here are all of our off-market companies for sale and a list of vetted business buyers:
https://docs.google.com/document/d/1wU2ZctV_KZnNDPpS_NNpLNp2nhNMLxOn5YbVZIwlyQU/edit?usp=sharing
Best viewed on PC for a clickable table of contents on the left.
And bookmark the link. It's a live Rolodex!
*Disclaimer these deals are usually a better fit for a strategic buyer; because great deals don't last very long on here. At the same time, since it's not a public site, there isn't as much competition as public sites. So you ought to check the deal sheet weekly. Reach out to us for the NDA and full CIM on any of these deals*
Financial Architecting Tip Of The Week
The only way to reach a fair win-win deal is vis-Ã -vis a business valuation that ensures that the seller is getting an honest market rate and that the buyer isn't overpaying.
While lower market deals have flat-lined at 3x multiples, some industries are an exception.
Leverage our licensed partners and get a non-biased 3rd party valuation sooner rather than later.
Deal Trophy Of The Week
Business Buyer Of The Week
Here is a list of all of our vetted buyers:
https://docs.google.com/spreadsheets/d/1oGisPRVIa2TsG4n_G8oNOrlLh2PoxiSObtJlRZISv7s/edit?usp=sharing