a single source, nothing corroborates it

Hold your data back until the deal closes

Give a prospective buyer partial read-only views and no bulk export, and keep customer records out of their hands until there is a letter of intent. Treat elaborate NDAs before any conversation, a reference you are steered away from and no web presence as reasons to stop.

The method

1. 01

   Treat these as red flags: no public web presence at all, a specific reference they steer you away from, elaborate NDAs demanded before any conversation, and requests for customer contact data or individual customer records before a Letter of Intent.

2. 02

   Give a prospective buyer read only, partial views and no bulk export path until the sale actually closes.

3. 03

   Do not hire a lawyer at first contact. Engage one when you are asked to sign anything irreversible such as a complicated NDA or an exclusivity clause, and definitely before a Letter of Intent.

4. 04

   Keep a current profit and loss sheet and set up read only accounts on your analytics tools so you can hand a buyer access in minutes.

What it returned

• ProfitWell, Baremetrics and forecasting tools such as Summit named as what buyers will want to see

Sources

• So You Got an Offer: How to Do Due Diligence on Your Potential Acquirer – The Bootstrapped FounderArvid Kahl · thebootstrappedfounder.com · Red Flags to Look out For · 2020-01-09