Client: First-Time Entrepreneur
Objectives
- Identify “large rock” business issues
- Assess whether the negotiated purchase price was reasonable
- Obtain guidance for a successful acquisition
Our Role
- Performed high-level due diligence
- Evaluated historical financial statement trends, current operational performance, and the seller’s projected turnaround
- Delivered an EBITDA-based valuation using comparable DealStats transactions
Results & Value
- Determined the business was underperforming, its value was significantly below the negotiated price, and supported reopening negotiations