Does Your Deal Have a Devil in the Details?
The right data can help you to analyze a company's gross margins by produce, service or customer. These details are critical when evaluating a potential deal.
I occasionally hear business owners describe a company they’re planning to sell as a simple and straightforward business. I’m a little skeptical when I hear these statements based on high-level assessments of the company, rather than a deep dive into the details of what truly drives the underlying
business operations.
Throughout the life cycle of a due diligence project, buyers often ask sellers for information. The more difficult requests include gross margins by product, service or customer. When buyers initially receive
pushback from a seller on a due diligence project, they often pivot the conversation and ask if they can sit down with the seller’s IT personnel to extract detailed source-level information (e.g., sales invoicing and purchasing detail, bill of materials expense, payroll detail and time sheet records for labor expense.)
