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Financial Due Diligence (FDD)
Before you buy a business, make sure you do your homework! Numbers tell a story and they never lie. We read that story for you and translate it in “normal people” terms. Before you make the biggest investment of your life, make sure you are buying what the seller has represented and the company has room to add more value to. Financial investigation is a crucial part of the buying process.
FDD is a comprehensive analysis to ensure informed and confident business investments. Our financial due diligence process involves a meticulous examination of financial records, assessment of cash flows, and evaluation of potential risks and opportunities. We dig deep into the financial health of the target business, providing you with a clear understanding of its viability and future potential.
By identifying any hidden liabilities, risks and concerns and ensuring the accuracy of financial statements, we provide you with a Financial Due Diligence report of our analysis so you can make well-informed decisions that protect your investment and set the stage for future success.
WHAT DOES THE FINANCIAL DUE DILIGENCE PROCESS LOOK LIKE?
Once you engage SLJ to perform this service, we sign a mutual Non-Disclosure Agreement and we send out a request list and a list of questions for you to ask the seller. A data room will be set up and the seller will upload the information we request. Once we receive all of the information, we begin our process. Typically within 5-7 business days we have completed our initial review and begin to populate questions for the seller. We then have a meeting with the seller, sometimes the broker and their accountant with us driving the call.
We represent the buyer only so our job is to advocate for you, address your concerns, and support you throughout the process. We ask the tough questions for you. Once we have our questions answered, we go back through, apply the answers, and look for any other issues as a result. Typically we spend another 1-3 weeks going back and forth with questions, requesting more information, etc. Once we are ready to issue the final report, we will compile our findings into a report, walk you through the report via screen share, and provide any recommendations to you should you choose to buy the business that you can implement for maximized results.
WHAT ALL DO YOU LOOK AT DURING YOUR INVESTIGATION?
Our firm will review the Profit & Loss, Balance Sheets, Tax returns, bank statements, General Ledger, Payroll and other financial related documents during our investigation. We run analytics and ratios to look for inconsistencies, incorrect representations, areas of concern that could cause you money and trouble down the road, etc.
We evaluate the cash flow and confirm the funds running through the company. Until you dig, you don’t know what you will find. Financial statements often look great “on paper” but behind those numbers can lurk money and major business problems.
Our firm will evaluate the risk of the investment to determine if it is a lucrative investment or will leave you with financial problems. Most businesses tend to be over priced; remember, we do not pay for potential or the “could be’s”. We also do not buy businesses based on projected earnings. While we do not perform a formal valuation, we can easily determine if the business is overpriced.
DOESN’T THE BROKER MAKE SURE THE FINANCIALS ARE REPRESENTED ACCURATELY BEFORE THEY PUT IT ON THE MARKET?
Typically, no. Brokers typically have a disclaimer stating they do not confirm any financial results. Remember, the broker represents the seller, not the buyer. They make a commission off the sales price. That being said, the broker is thus not motivated to help you do your homework.
Many brokers do not have any financial background and are typically not accountants. Even if the broker is an accountant, a CPA, or other financial professional, still hire your own accountant as we work for the buyer, not the seller and do our work unbiased. Whether you buy the company or not is not our business, our job is to make sure you have all of the facts and information you need to make an informed decision. Good brokers should never pressure, force, or tell you to ignore something. And as always, trust your gut.
Schedule a due diligence consultation today. You don’t want to wait until the clock is running before you find a CPA that you trust and connect with.
Fractional CFO
Business Decisions made without proper Financial Investigation and analysis often are the most expensive.
Whether you are looking to buy a business, expand your current one so you can eventually sell it to fund your retirement or a new venture, or just improve your bottom line, hiring a Financial Detective/Fractional CFO can be the difference between keeping a lot of money or losing a lot of it.
If your plan is to just expand your current business (that could also involve a business acquisition, so don’t rule that out! It can be a great tool for expansion!), hiring a consultant to do an independent review of your plan and crunch the numbers is invaluable. As a Financial Visionary, I can help you turn your business plans into a strategic reality when we run the numbers. This allows you to create a plan that will actually achieve your goals; increase in sales, increase in profit, and increase in owners payout. Those 3 key areas are key to business growth (and a future sale of your business for top dollar).
My goal is to make your current or future company as valuable as possible. To turn it into a wealth generating tool that can fund your lifestyle, retirement, and business expansion.
Numbers never lie. Unfortunately, most people skip this crucial step in any decision making process (or put little weight and effort into it).
Access expert financial leadership and strategic guidance without the full-time cost. Our fractional CFO services provide your business with the expertise it needs without the cost. Whether you need help with financial planning, budgeting, cash flow management, or strategic decision-making, our fractional CFO service is tailored to meet your specific needs.
• Profit Improvement- every business has “Profit Leaks”. Most of the time they are hard to see on your own when you are deeply involved in the day to day operations. As a Financial Detective, we will run numbers, review your internal processes, and evaluate the company as a whole to find out where you are losing money, strategies to implement to fix the leaks, grow your bottom line, and improve your owners pay. Always pay yourself first!
•Analyze new opportunities and idea implementation- before you make a major decision like adding a new location, taking on a large loan to fund expansion, implement new revenue streams, etc. make sure the numbers make sense. Often, Business Owners jump into a new opportunity or strategy without knowing all the financial data and this can be a very costly mistake.
By leveraging our experience and insights, you can enhance your financial operations, make more informed strategic and financial decisions and drive your business toward long-term success and profitability
Fractional CFO Services with Me
Hi there, I'm Shauna with SLJ Profit Consulting. I’d love the opportunity to talk with you about your business journey. Whether you need ongoing CFO support or assistance with a specific financial challenge, I'm here to help.
Looking for expert financial leadership without the full-time cost?
Schedule a consultation with me to discuss how Fractional CFO services can provide the strategic financial guidance your business needs.
Book Your Consultation
Use our easy-to-navigate calendar to schedule a time that works best for you. Whether you need ongoing CFO support or assistance with a specific financial challenge, I'm here to help.
Tailored Solutions for Your Business
I will work closely with you to understand your business's unique financial landscape and develop customized solutions to improve cash flow, profitability, and long-term growth.
This personalized session is designed to provide you with tailored insights and explore how we can support your business needs.
Thank you, and I look forward to speaking with you soon!
Fractional CFO
Business Decisions made without proper Financial Investigation and analysis often are the most expensive.
Whether you are looking to buy a business, expand your current one so you can eventually sell it to fund your retirement or a new venture, or just improve your bottom line, hiring a Financial Detective/Fractional CFO can be the difference between keeping a lot of money or losing a lot of it.
If your plan is to just expand your current business (that could also involve a business acquisition, so don’t rule that out! It can be a great tool for expansion!), hiring a consultant to do an independent review of your plan and crunch the numbers is invaluable. As a Financial Visionary, I can help you turn your business plans into a strategic reality when we run the numbers. This allows you to create a plan that will actually achieve your goals; increase in sales, increase in profit, and increase in owners payout. Those 3 key areas are key to business growth (and a future sale of your business for top dollar).
My goal is to make your current or future company as valuable as possible. To turn it into a wealth generating tool that can fund your lifestyle, retirement, and business expansion.
Numbers never lie. Unfortunately, most people skip this crucial step in any decision making process (or put little weight and effort into it).
Access expert financial leadership and strategic guidance without the full-time cost. Our fractional CFO services provide your business with the expertise it needs without the cost. Whether you need help with financial planning, budgeting, cash flow management, or strategic decision-making, our fractional CFO service is tailored to meet your specific needs.
• Profit Improvement- every business has “Profit Leaks”. Most of the time they are hard to see on your own when you are deeply involved in the day to day operations. As a Financial Detective, we will run numbers, review your internal processes, and evaluate the company as a whole to find out where you are losing money, strategies to implement to fix the leaks, grow your bottom line, and improve your owners pay. Always pay yourself first!
•Analyze new opportunities and idea implementation- before you make a major decision like adding a new location, taking on a large loan to fund expansion, implement new revenue streams, etc. make sure the numbers make sense. Often, Business Owners jump into a new opportunity or strategy without knowing all the financial data and this can be a very costly mistake.
By leveraging our experience and insights, you can enhance your financial operations, make more informed strategic and financial decisions and drive your business toward long-term success and profitability
WANT TO SELL YOUR BUSINESS FOR TOP DOLLAR?
GETTING YOUR BUSINESS SELLABLE IS A PROCESS AND CAN TAKE UP TO THREE YEARS IN ORDER TO GET THE MOST MONEY FOR IT. DON’T WAIT UNTIL YOU’RE IN A CRUNCH TO SELL.
Perform an overall wellness check on your business and determine how much your business could sell for.
Review the financials in detail, develop an action plan to sell at the value you are aiming to receive, educate and support you during the process, and work with your broker/banker/attorney to help facilitate a smooth process.
A Quality of Earnings report will come in handy for sellers and make your business stand out from the rest when it is available to potential buyers. It allows the buyer to purchase with more confidence and clarity and reduce the amount of questions, scrutiny, and noticeable red flags.
WANT TO SELL YOUR BUSINESS FOR TOP DOLLAR?
Getting your business sellable is a process and can take up to Three Years in order to get the most MONEY for it. Don't wait until you're in a crunch to sell.
Perform an overall wellness check on your business and determine how much your business could sell for.
Review the financials in detail, develop an action plan to sell at the value you are aiming to receive, educate and support you during the process, and work with your broker/banker/attorney to help facilitate a smooth process.
A Quality of Earnings report will come in handy for sellers and make your business stand out from the rest when it is available to potential buyers. It allows the buyer to purchase with more confidence and clarity and reduce the amount of questions, scrutiny, and noticeable red flags.
HERE IS HOW IT WORKS:
Schedule a free consultation using the button below
We will discuss your business, how much you want to sell it for, and see how we can get top dollar
Together, we can decide if us working together makes sense and the level of support you need.
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