A few weeks ago I polled our dealmakers to determine the most frequent issues they encounter that cause deals to derail or slow due diligence down dramatically. It was interesting to see the commonalities in their replies. The most common issues include:
- Poor financial reporting systems
- Excessive owner dependence
- Significant customer concentration
- Lack of recurring revenue streams
Throughout the next few weeks we will cover the significance of each of these individually. The good news is that with good planning and effective implementation, each of these can be mitigated and significantly improved.
And the really good news is that the first one on the list, and the topic we will cover today, is perhaps the quickest and most effective fix of all.