Due Diligence Deciphered: How to Avoid Buyer's Remorse with Elliott Holland [The Opportunity Ep.144]

There's a lot on the line when you buy a business, so you
want to make sure you buy a business that is primed for
success. 


An important lesson you need to learn as a buyer is that
you can't take businesses at face value. There's a lot going on
below the surface that you need to uncover.


That's where due diligence comes in. 


Few people know more about the due diligence process than
Elliott Holland. Elliott is the Co-Founder and CEO of Guardian
Due Diligence, a diligence solution for first-time buyers and
self-funded searchers.


In this episode, Elliott takes us on a deep dive into the
due diligence process. 


He highlights red flags buyers should look out for, the
common mistakes buyers make, and he breaks down the due diligence
process, step by step. According to
Elliott,


"There are four main buckets of due diligence in online
business. Financial,
Operational,
Commercial, and Online
metrics. In online business, 70 to 80% of due
diligence is focused on financials. Financials are created
through the operations of a business, and so they are a great way
to really understand the story of the business."


Elliott also shared his top due diligence war stories and
the lessons buyers can learn from
them.If you're
in the market to buy an online business, this episode is
jam-packed with useful information that could make or break your
acquisition!
Topics Discussed in This Episode:


Elliott's background and how he became involved in
business acquisitions (02:22)


What is Quality of Earnings? (14:13)


The best time to hire a due diligence service
(21:50)


The different areas of due diligence (23:09)


What Elliott looks at when examining a business's
financials (25:37)


How Elliott examines a business's operations
(32:19)


The classic due diligence mistake experienced
entrepreneurs make (41:54)


Top due diligence questions buyers should ask
(44:50)


Elliott's favorite due diligence war stories
(53:16)

Mentions:


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Guardian Due Diligence


10 best practices doc


War Stories hub


Elliott's Twitter


Elliott's YouTube channel



Sit back, grab a coffee, and learn how the due diligence
process really works!