#327 Masterclass on Financial Due Diligence

Business Buying Strategies from The Dealmaker's Academy

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

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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 [email protected].

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if you've already bought a business, you should be part of my Inner Circle group where we discuss raising capital, integration management, and exiting. Email Maria on [email protected] for more information.