The Deal Review

An independent, third-party, neutral examination of the deal.

Not a valuation. Not a quality of earnings. A holistic look at one specific opportunity and one specific buyer, to answer a question no one else at the table is being paid to ask.

The question everyone skips

By the time a deal reaches diligence, a lot of professionals are working on it. A valuation firm tells you what the business is worth. A quality of earnings engagement tells you whether the reported earnings are real. An attorney tells you where the legal exposure sits. A lender tells you what it will finance.

All of that is necessary. None of it answers the question that determines whether you will be glad you bought it: is this the right deal for you, at this price, on these terms, with this owner, at this point in your life?

Every other advisor in the room earns more if you close. We do not.

The Deal Review is a flat-fee, independent engagement. On a Deal Review we are not brokering the transaction, we do not represent the seller, and we are not compensated on whether it closes. The finding can be yes, yes with conditions, or no. All three are useful.

Scope

What the review examines

Six lenses, weighted to the deal in front of you. A ten-person service business and a twelve-million-dollar manufacturer do not get the same review.

01

Financial picture

How the earnings are built, how the add-backs hold up, how working capital actually behaves, and what the debt service looks like against realistic performance rather than the pro forma.

02

Owner dependence

How much of the business is the seller: relationships, technical knowledge, pricing authority, the reason customers stay. This is the single most common reason a good business becomes a bad acquisition.

03

Concentration and durability

Customer and supplier concentration, contract quality, recurring versus repeat revenue, competitive position, and what happens to this business in a soft year.

04

People and culture

Key employees, retention risk at the announcement, compensation that is below market, and whether the team will follow a new owner. The org chart is rarely the real structure.

05

Structure and terms

Whether the proposed structure allocates risk sensibly, where the terms leave you exposed, and what could be renegotiated to close the gap between the ask and what the business can support.

06

Buyer fit

The human part. Your skills, your capital, your risk tolerance, your family situation, the role you want to play, and whether this business needs the owner you intend to be.

Positioning

How it differs from the work you may already be buying

EngagementCore questionWhat it is not
Business valuationWhat is this business worth?Not an opinion on whether you should buy it
Quality of earningsAre the reported earnings real and sustainable?Not an assessment of fit, people, or structure
Legal due diligenceWhat are the legal and contractual exposures?Not a commercial or operational judgment
Broker or intermediaryCan we get this transaction closed?Not neutral; compensation depends on closing
The Deal ReviewIs this the right deal for this buyer, on these terms, right now?Not a substitute for valuation, QoE, or counsel

If the review shows you need a formal valuation or a quality of earnings engagement, we will say so and help you scope it.

Process

What the engagement looks like

  1. Intake

    A working session on the target and on you. What you are buying, what you are bringing, and what a good outcome looks like three years out.

  2. Document review

    Financials, the offering memorandum or listing package, the letter of intent, leases, contracts, and whatever diligence material you already have.

  3. Examination

    The six lenses, applied and weighted to this deal, with follow-up questions routed through you to the seller or intermediary.

  4. Findings

    A written report with a clear position, the conditions that would change it, the risks ranked by what they could cost you, and the specific questions still to be answered.

  5. Debrief

    A live session to work through the findings, and, if you proceed, the renegotiation points worth raising before you sign.

Questions

Common questions

Is this a valuation?

No. We do not issue a certified opinion of value, and the review should not be used where a formal valuation is required, such as litigation, gift and estate work, or an ESOP. If you need one, we will tell you.

Is this a quality of earnings report?

No. A QoE is an accounting engagement that tests whether reported earnings are real and sustainable. The Deal Review looks at the financial picture as one of six lenses, and it will flag when the deal size and risk warrant a full QoE.

Can you do this on a deal I found myself?

Yes. Most reviews are on deals the buyer sourced independently or through a broker representing the seller. We are frequently the only party in the transaction who is not paid to close it.

What if the answer is no?

Then you get a documented no, with the reasoning. A review that talks a buyer out of the wrong acquisition is the highest return work we do.

Do you work with my attorney and CPA?

Yes, and we prefer it. We coordinate rather than duplicate, and the findings are written to be shared with your advisors and, where relevant, your lender.

How long does it take?

It depends on deal size and how complete the seller's materials are. We scope timing at intake and work to the deadlines in your letter of intent.

Selling a business instead?

Our sister practice, The Exit Strategy Co., works with owners preparing to sell, from exit readiness through closing.

Visit The Exit Strategy Co. ↗

Have a deal you are unsure about?

Send us the opportunity. We will tell you whether a Deal Review is the right engagement and what it would cost.