Digging into a company’s finances before purchasing it gives you a greater chance of success

Conducting financial due diligence is vital before acquiring a company because it helps you better understand the business’s financial performance and what’s driving its numbers. Without this process, you’d be taking the numbers at face value and could be in for a surprise in the future.

Writing an effective business plan is an essential part of buying a business

Writing a small business plan is an essential step before purchasing a company because it provides an overview of the organization's goals, strategies, and framework. You'll want to know where you're heading and how you'll get there before you invest, and this plan provides that information.

Reviewing a sample due diligence report is helpful throughout your acquisition journey, but especially at the beginning of your self-funded search. As a standardized view of a thoroughly evaluated company, it will give you a primer on what you can expect from proper due diligence while also helping you to focus your search.

When writing a letter of intent in business acquisitions, certain factors could lead to costly mistakes. Here are some things to avoid.

Once you’ve found a business you’re interested in acquiring, the next thing to do is write a letter of intent (LOI). A letter of intent in business acquisitions is a precise transaction summary. It captures the details of the business, both parties’ information, the amount of the sale, and the time period. It also outlines the terms and conditions of the acquisition.

Our War Stories series is a testament to why it’s important to evaluate your deal comprehensively as a self-funded searcher. Sometimes uncovering an unknown that might not seem very relevant is what will keep you from making a poor decision. This is even more important for self-funded searchers new to acquisitions who don’t have experience spotting issues.