Due Diligence

Use Case: Buyer Due Diligence and Quality of Earnings (QoE)

Many small business purchases happen quietly, between family members, internal employees, trusted partners, or local competitors. These off-market deals often move quickly and rely on mutual trust. But even when the price feels fair, there’s still value in stepping back and asking: Is this number grounded in reality?

An independent valuation gives buyers the confidence to move forward, not because they don’t trust the seller, but because they want to fully understand the business they’re about to step into.

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It’s All About Clarity

When a deal isn’t brokered or widely marketed, it can be easy to accept a number based on rules of thumb or internal expectations. But price is just the headline. A professional valuation goes deeper, reviewing normalized financials, identifying key drivers of value, and flagging any risks that may affect long-term stability.

In some cases, a valuation will confirm you're getting a solid deal. In others, it may reveal that you're paying more than you should. Either way, the cost of the report is small compared to the clarity it provides and the potential thousands it can save.

Understanding the Quality of Earnings (QoE) is essential. The numbers a seller presents today might look strong, but a valuation helps answer a deeper question: how sustainable are those earnings going forward?

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When Should a Buyer Consider a Valuation?

A valuation is especially useful if:

‍- The business hasn’t been listed on the open market‍

- There’s no broker involved‍

- You’re relying on seller-prepared numbers‍

- You’re unfamiliar with the industry and want benchmark context‍

- The deal involves vendor financing, earnouts, or other flexible terms

It’s not about slowing the deal down, it’s about making sure you’re entering this new opportunity fully aware of both the upside and downside.

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Recommended Packages

For early-stage discussions or smaller, internal deals, our Lite Package offers a fast, focused assessment of value. It’s ideal when you want to quickly validate pricing and ensure it aligns with market expectations.

If the deal is further along, or if you're preparing for negotiation or financing, the Standard Package adds deeper analysis, including multiple valuation methods, comparable sales data, and commentary to help you understand what’s driving the number.

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Peace of Mind for a Smart Decision

Whether you’re buying a business from someone you know or stepping into a new ownership role for the first time, an independent valuation helps ensure the deal is fair, transparent, and aligned with your expectations.

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Above all else, it’s about peace of mind, and entering a new chapter with confidence.

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