#327 Masterclass on Financial Due Diligence

In this episode of Business Buying Strategies, Johan Gory, managing director of OnPoint Accounting, offers an in-depth masterclass on financial due diligence.

 

Johan explains the importance of involving a due diligence expert, common pitfalls that cause buyers to overpay, and techniques such as the 'source of funds' trick to uncover the real financial health of a business.

 

He also discusses the relevance of goodwill, the challenges and opportunities in buying distressed businesses, and the role of director's loans in business valuation. This episode is a must-listen for anyone serious about buying a business without risking their own cash.

 

Key moments

 

00:00 Introduction to Business Buying Strategies

01:29 Meet Johan Gory: Expert in Financial Due Diligence

05:16 The Importance of Financial Due Diligence

08:36 Understanding Financial Terminology and Add-Backs

13:53 Opportunities and Challenges in Buying Distressed Businesses

17:25 Networking for Business Opportunities

22:04 Understanding Director's Loans

23:54 Negotiation Strategies with Director's Loans

26:07 Evaluating Business Owner's Compensation

29:48 The Importance of Cash Flow in Due Diligence

30:57 The Secret Weapon: Source of Funds Report

38:49 Commercial Due Diligence: Beyond the Numbers

 

** Looking for a great acquisition lawyer in the UK? Use mine! **

If you are looking for a lawyer in the UK to help you get the deal over the line, then use my own lawyer, John Andrews. You can phone his office at [phone] or email him at [e-mail].

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