The Deal Checklist


Have we carefully reviewed both companies’ operating forecasts including methodology and rationale?


Have we received a detailed third-party review of the company’s financial statements?


Is our revenue pro-forma for the combined organization optimistic or realistic?


Are our pro-forma assumptions optimistic or realistic?


Have we considered in the pro-forma:

  • To what extent have the company’s earnings been managed?
  • What is the magnitude of historical excessive owner compensation and perks?
  • What future changes might occur in the business, positive and negative?


Are the price and terms appropriate based upon the pro-forma?


How reliable is the company’s financial information?


What is the credibility of the company’s internal financial systems?


Is a reliability discount factor appropriate?


With the discount factor, are the price and terms still appropriate?


If the worst possible thing we can imagine actually occurs – CAN WE SURVIVE??


Did we review all former checklists?


Did we learn something new or conflicting?


Is there anything here that makes me want to walk away?


Should we continue?


The Deal