Andy and Jessica welcome you to another episode of The Deal Board; this time they are talking about due diligence. Elliott Holland is joining today's episode, Elliott is the owner of a company that specializes in due diligence, and he is sharing what his company does. Part of the issue with due diligence is having the time to do it and that is why hiring a company that specializes in it is crucial. Due diligence is an inspection period for a business but it involves much more than just the financial aspect of it. Listen to his episode and learn all you need to know about due diligence.
Listing of the week: Chris "Chip" Redmond (Central Florida) is selling an HVAC company located in Northeast Orlando, it has been in business for 11 years, run by a retired marine. P&L: $2.5 million. The company made $2.2 in gross sales in 2019. Showing an awesome growth year, past year. Amazing reviews on Google. Listing price: $1.55 million. Call Chip Redmond at (321) 219-6867 or email chrisredmond@tworld.com.
Key takeaways:
[1:15] Jessica explains what due diligence is.
[1:42] What do people look for in financial due diligence?
[3:22] Andy talks about due diligence in small vs. big businesses.
[3:52] You will need a partner to run the process of due diligence.
[5:17] Part of due diligence is doing a lien search.
[6:18] Environmental issues need to be contemplated.
[7:15] You will find things during due diligence that don't match up.
[8:12] No business is perfect.
[13:17] Elliott Holland from Guardian Due Diligence
[14:06] Top five mistakes people make in due diligence.
[19:42] Elliott talks about what he does and the different levels of due diligence.
[23:38] How long does it take to do due diligence in a business worth half a million to 5 million dollars?
[27:10] Elliott highlights the benefits of hiring someone specialized in due diligence to do the work.
[29:12] Guardian Due Diligence works all around the nation.
[31:22] Deal of the week: JT Tatem ( North Carolina) sold a medical massage therapy business SDE: $110,000 per year. The listing price was $260,000 and it was sold for $251,000.
[33:45] Allan Kaye talks about the trends in the commercial real estate business.
[34:48] The real estate and the business can have different values.
[35:17] Now is a great time to get financing since the rates are still low.
[38:38] It is a great time to sell commercial real estate and business all together.
[39:45] Listing of the week: Chris "Chip" Redmond (Central Florida) is selling an HVAC company located in Northeast Orlando, it has been in business for 11 years, run by a retired marine. P&L: $2.5 million. The company made $2.2 in gross sales in 2019. Listing price: $1.55 million.
[43:03] Darren Mize from GCF Valuations talks about his business.
[44:12] How are businesses being valued right now?
Mentioned in this Episode:
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Email us thedealboard@tworld.com
Email Allan Kaye at akaye@tworld.com
Call Chip Redmond at (321)219-6867 or email chrisredmond@tworld.com
Tweetables:
"Let's not treat incidents as catastrophes neither catastrophes as incidents" #thedealboard #transworldbusinessadvisors #duediligence #business
"There is no perfect business out there." #thedealboard #transworldbusinessadvisors #duediligence #business
"Due diligence is about asking: Do customers like this business?" #thedealboard #transworldbusinessadvisors #duediligence #business
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