Top 16 Questions To Ask During M&A Due Diligence

Published: June 16, 2021, 1 p.m.

b'Today, Eric gives a rundown of the core questions you should be asking during the due diligence of mergers and acquisitions and the implications of each question. Tuning in, you\\u2019ll find out how to ascertain what discounts you can negotiate, what assets you could potentially exclude from the sale, what hidden risks you may be taking on, and if the company\\u2019s profitability and future potential are worth the price. This episode will help you decide whether or not you want to acquire a business and negotiate a better price.\\n TIME-STAMPED SHOW NOTES:\\n [00:33] The first question you should ask during mergers and acquisitions: Why are you interested in exploring the sale?\\n [00:45] Question two: What are your plans with the money?\\n [01:11] Question three: Who are the A-players on the team?\\n [01:30] Question four: What does your marketing and sales engine look like?\\xa0\\n [02:02] Question five: What other assets do you have?\\n [02:27] Question six: Who would be staying long term with the company?\\n [02:39] Question seven: Who is at the cap table?\\n [02:50] Question eight: What is your trailing 12 months revenue and trailing 12 months profit?\\n [02:58] Question nine: What has your growth rate been over the last three years?\\n [03:09] Question 10: Who are your competitors?\\n [03:14] Question 11: Do you have any customers that account for more than 10 percent of revenue?\\n [03:29] Question12: What is the customer life-time value?\\n [03:42] Question 13: What is the churn rate of employees, customers, and revenue?\\n [03:56] Question 14: How many customers do you have right now?\\n [04:01] Question 15: If it\\u2019s a service business, what capacity are you at?\\n [04:21] Question 16: What is your marketing stack or sales stack?\\n [04:28] Question 17: If it\\u2019s a dev team, what languages are you using?\\n [04:35] Question 18: What growth opportunities exist?\\n [04:43] Question 19: What are your core capabilities or core focus?\\xa0\\n [05:09] Let Eric know in the comments if he has missed any questions and subscribe.\\n \\xa0\\n Leave Some Feedback:\\n \\xa0\\n \\xa0\\n What should I talk about next?\\xa0Who should I interview? Please let me know on Twitter or in the comments below.\\n Did you enjoy this episode?\\xa0If so, please leave a short review here\\n\\n Subscribe to Leveling Up on iTunes\\n\\n Get the non-iTunes RSS Feed\\n\\n \\xa0\\n \\xa0\\n Connect with Eric Siu:\\xa0\\n \\xa0\\n \\xa0\\n Growth Everywhere\\n Single Grain\\n Leveling Up\\n Eric Siu on Twitter\\n \\xa0\\n Eric Siu on Instagram\\n \\nLearn more about your ad choices. Visit megaphone.fm/adchoices'