Leveling Up with Eric Siu

Top 16 Questions To Ask During M&A Due Diligence


Listen Later

Today, Eric gives a rundown of the core questions you should be asking during the due diligence of mergers and acquisitions and the implications of each question. Tuning in, you’ll find out how to ascertain what discounts you can negotiate, what assets you could potentially exclude from the sale, what hidden risks you may be taking on, and if the company’s profitability and future potential are worth the price. This episode will help you decide whether or not you want to acquire a business and negotiate a better price.

TIME-STAMPED SHOW NOTES:

  • [00:33] The first question you should ask during mergers and acquisitions: Why are you interested in exploring the sale?
  • [00:45] Question two: What are your plans with the money?
  • [01:11] Question three: Who are the A-players on the team?
  • [01:30] Question four: What does your marketing and sales engine look like? 
  • [02:02] Question five: What other assets do you have?
  • [02:27] Question six: Who would be staying long term with the company?
  • [02:39] Question seven: Who is at the cap table?
  • [02:50] Question eight: What is your trailing 12 months revenue and trailing 12 months profit?
  • [02:58] Question nine: What has your growth rate been over the last three years?
  • [03:09] Question 10: Who are your competitors?
  • [03:14] Question 11: Do you have any customers that account for more than 10 percent of revenue?
  • [03:29] Question12: What is the customer life-time value?
  • [03:42] Question 13: What is the churn rate of employees, customers, and revenue?
  • [03:56] Question 14: How many customers do you have right now?
  • [04:01] Question 15: If it’s a service business, what capacity are you at?
  • [04:21] Question 16: What is your marketing stack or sales stack?
  • [04:28] Question 17: If it’s a dev team, what languages are you using?
  • [04:35] Question 18: What growth opportunities exist?
  • [04:43] Question 19: What are your core capabilities or core focus? 
  • [05:09] Let Eric know in the comments if he has missed any questions and subscribe.

 

Leave Some Feedback:

 

 

  • What should I talk about next? Who should I interview? Please let me know on Twitter or in the comments below.
  • Did you enjoy this episode? If so, please leave a short review here
  • Subscribe to Leveling Up on iTunes
  • Get the non-iTunes RSS Feed

 

 

Connect with Eric Siu: 

 

 

  • Growth Everywhere
  • Single Grain
  • Leveling Up
  • Eric Siu on Twitter

 

  • Eric Siu on Instagram
...more
View all episodesView all episodes
Download on the App Store

Leveling Up with Eric SiuBy Eric Siu

  • 4.8
  • 4.8
  • 4.8
  • 4.8
  • 4.8

4.8

298 ratings


More shows like Leveling Up with Eric Siu

View all
Social Media Marketing Podcast by Michael Stelzner, Social Media Examiner

Social Media Marketing Podcast

1,447 Listeners

Entrepreneurs on Fire by John Lee Dumas of EOFire

Entrepreneurs on Fire

3,835 Listeners

The GaryVee Audio Experience by Gary Vaynerchuk

The GaryVee Audio Experience

16,789 Listeners

Marketing School - Digital Marketing and Online Marketing Tips by Eric Siu and Neil Patel

Marketing School - Digital Marketing and Online Marketing Tips

1,256 Listeners

The Martell Method w/ Dan Martell by Dan Martell

The Martell Method w/ Dan Martell

408 Listeners

Noah Kagan Presents by Noah Kagan

Noah Kagan Presents

906 Listeners

The Game with Alex Hormozi by Alex Hormozi

The Game with Alex Hormozi

4,348 Listeners

Nudge by Phill Agnew

Nudge

170 Listeners

My First Million by Hubspot Media

My First Million

2,619 Listeners

Creator Science by Jay Clouse

Creator Science

457 Listeners

Marketing Made Simple by Powered by StoryBrand

Marketing Made Simple

292 Listeners

The Exit Five CMO Podcast (Hosted by Dave Gerhardt) by Dave Gerhardt

The Exit Five CMO Podcast (Hosted by Dave Gerhardt)

40 Listeners

Marketing Against The Grain by Hubspot Media

Marketing Against The Grain

352 Listeners

Moneywise by Hampton

Moneywise

643 Listeners

AI Explored by Michael Stelzner, Social Media Examiner—AI marketing

AI Explored

78 Listeners