Main Street & SMB

BizQuest transaction diligence

Published · Reviewed by The Diligence Standard Team · Updated

Make the financial bridge and included/excluded assets explicit so broad marketplace exposure does not create avoidable buyer confusion.

Diligence focus

  • Cash flow / EBITDA definition
  • Included assets and inventory
  • Financing assumptions
  • Real-estate inclusion
  • Add-back support
  • Customer and vendor concentration
  • Owner dependence
  • Licensing

First evidence requests

  • Listing financial definition
  • Tax returns
  • Monthly financial statements
  • Add-back detail
  • Asset/inventory schedule
  • Customer/vendor concentration
  • Lease or real-estate documents
  • Employee and license roster

Warning signals

  • Cash flow label is not defined
  • Financing available is treated as lender approval
  • Real estate and operating business economics are blended
  • Listing narrative substitutes for monthly history
  • Growth claims lack capacity or customer evidence