Mark Osborne explains why sellers need to understand their revenue story before buyers dig into due diligence. A Quality-of-Earnings review exposes weak spots like founder dependency and customer concentration. Getting ahead of these issues during negotiations puts you in a stronger position.
If that seller does that QoE, at least they're aware of where there are, as you say, you know, squishy spots within the reporting. And it's less about do our bank accounts match our receivables? And it's more about how are our revenues being generated? And do we know our story on that? Like founder dependency, like customer concentration. Right. If you get caught flat-footed on that and you didn't anticipate those topics, You're going to have a lot harder time than if you anticipated, well, this is something we need to demonstrate how we have built systems to, you know, sort of insulate us from that risk.
How Can You Maximize Your Business Value Before Selling? with Randy Katz Video
