• Ken Mack

Deal Structuring Questions to Ask the Seller

Here is a sample email template I use to gather information to pre-qualify my deals. This is written to the effect as if you are speaking with a broker/agent.


Questions to ask seller/broker

Some basic pre-due diligence questions before knocking out the heads of terms,


Dear sir

To give us a better understanding of the company and it’s standing, we would be obliged if you could answer a few questions. This will help us establish if we will be a good fit to work together.


Concluding your answers we will look with a view to issue an LOI and enter an exclusivity period where we will instruct our legal team to carry out further in-depth due diligence.


Is the seller looking to retire or move on to the next venture once he / she resigns?


Is the seller looking to invest into another project upon retirement?


How motivated is the seller to resign from his / her position?


Is the business cash flow positive?


What are the total secured / unsecured debts?


What is the annual turnover (last 3 years)?


What is the profit/loss (last 3 years)?


Please provide the profit/loss statement and balance sheet for the last 3 years.


What are the companies current tangible assets?


Do any of the assets have any financial charges against them?


What is the outstanding debtor book value?


How much is currently held in stock/inventory?


Does the business lease or own its premises?


How much does the director pay themselves annually?


What is the role of the director?


How many staff work for the company?


Is the owner open to seller finance / deferred payments?


What is the current credit score of the company?


Does the business have an overdraft limit? If so what is it?


What is the burn rate of the company? (It’s monthly break-even figure after expenses are paid, the monthly cost of sales)


Are all companies tax affairs in order?


What is the current relationship like with the companies bank?


Has the company and or its directors ever been subject to any legal or insolvency proceedings?


I look forward to hearing back from you by return.


All the best

Ken Mack

571 views2 comments

UK OFFICE

Floor 2

9 Portland Street

Manchester

M1 3BE

Email: knowlege@academyofacquisitions.com

Phone: +44 0843 886 9526

Apply to join our 

 FREE ACQUISITIONS MASTERCLASS

IMPORTANT EARNINGS & LEGAL DISCLAIMER

All material herewith is protected by the copyright law and has been exclusively produced, copied by and solely for the educational purposes of the Ken Mack's Acquisitions Made Simple online course and mentorship programs under licence. You may not sell, alter or further reproduce or distribute any part of this course/material to any other person. Where provided to you in electronic format, you may only print from it for your own private study and research. Failure to comply with the terms of this warning may expose you to legal action for copyright infringement in a court of law

EARNINGS & INCOME REPRESENTATIONS made by Ken Mack, kenmack.com, Acquisitions Made Simple, Business Buying Bootcamp, Business Buying Crash Course, Private Mentorship and their advertisers/sponsors (collectively, "Ken Mack Programs") are aspirational statements only of your earnings potential. The success of Ken Mack, testimonials and other examples used are exceptional, non-typical results and are not intended to be and are not a guarantee that you or others will achieve the same results. Individual results will always vary and yours will depend entirely on your individual capacity, work ethic, business skills and experience, level of motivation, diligence in applying the Ken Mack Programs, the economy, the normal and unforeseen risks of doing business, and other factors.

The Ken Mack Programs, and Ken Mack individually, are not responsible for your actions. You are solely responsible for your own moves and decisions and the evaluation and use of our products and services should be based on your own due diligence. You agree that the Ken Mack Programs are not liable to you in any way for your results in using our products and services. See our Terms & Conditions for our full disclaimer of liability and other restrictions.

The Ken Mack Programs, including Ken Mack personally, may receive compensation for products and services they recommend to you. Ken Mack personally uses a recommended resource unless it states otherwise. If you do not want the Ken Mack Programs and Ken Mack to be compensated for a recommendation, then we advise that you search online for the item externally. 

FINANCIAL, INVESTMENT & TAX ADVICE

Ken Mack is not a financial, investment or tax advisor. Any statements made by Ken Mack, Acquisitions Made Simple online course or any of the Ken Mack mentorship programs are solely the views and options of Ken Mack, should not be taken literally and should be used for educational purposes only. . You should consult first with your financial, tax or investment advisor before taking any actions and recommendations. Ken Mack personally, Academy of Acquisitions Ltd, Acquisitions Made Simple, the Business Buyers Bootcamp and any of the Ken Mack mentorship programs will not be held liable for any consequences of your actions. 

© 2020 - 2021 by Ken Mack Enterprises |  Terms of Use  |   Privacy Policy