Eleven Potential Deal Killers To Spot Early: "Acquiring a business can take a substantial amount of time. Therefore you should conduct a pre-due diligence investigation to identify any potential deal killers before very much time and expenses are committed. You should have a reasonable level of comfort that potential acquisition candidates fit your criteria and have a reasonable chance of being acquired successfully. These issues also affect the price that you may be willing to pay for a business. Items to review:
1. The Company. Background information on the company, owners, and management.
Why is the owner selling the business? Is the business solely dependent on the current owner and does it have good management? Does the business have an organization chart and description of the function of each position? Get a summary of the experience, education, and accomplishments of each key manager.
2. The Asking Price. Specifies what is for sale (assets, stock, or real estate), the price, and terms."
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