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Business Due Diligence

Financial, operational, customer and legal diligence before you close.

Grace Chen, CPAGrace Chen, CPATransaction Advisory PartnerIntermediate 21 lessons 3h 44m 4.7 (9)
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Members-only course. This course is included with club membership.

About this course

A comprehensive diligence process for business buyers: quality of earnings, proof of cash, customer concentration, employee and vendor dependencies, licenses, contracts and litigation.

What you will learn

  • Run a proof-of-cash and quality-of-earnings review
  • Assess customer and supplier concentration
  • Evaluate key employee and owner dependency
  • Coordinate legal, tax and insurance diligence

Curriculum

8 modules · 21 lessons · 3h 44m

  1. Module 1

    Introduction

    3 lessons

  2. Module 2

    Core Principles

    4 lessons
    • Why Buy an Existing BusinessVideo · 13 min
    • SDE vs EBITDAWritten lesson · 9 min
    • Defining Your Buy BoxVideo · 13 min
    • Knowledge CheckQuiz · 5 min

  3. Module 3

    Deal Structure

    3 lessons
    • Asset Purchase vs Stock PurchaseVideo · 13 min
    • SBA 7(a) Financing BasicsWritten lesson · 9 min
    • Seller Notes, Earnouts and HoldbacksVideo · 13 min

  4. Module 4

    Financial Analysis

    3 lessons
    • Recasting Financial StatementsVideo · 13 min
    • Valuation MultiplesWritten lesson · 9 min
    • Debt Service Coverage for BuyersVideo · 13 min

  5. Module 5

    Risk Management

    2 lessons
    • Customer ConcentrationVideo · 13 min
    • Owner DependencyWritten lesson · 9 min

  6. Module 6

    Real-World Examples

    2 lessons
    • Example: Valuing a Landscaping CompanyVideo · 13 min
    • Example: Add-Backs That Did Not Survive DiligenceWritten lesson · 9 min

  7. Module 7

    Case Study

    2 lessons
    • Case Study: HVAC Services AcquisitionCase study · 14 min
    • Debrief: Owner Dependency Is a Financial VariableWritten lesson · 9 min

  8. Module 8

    Final Assessment

    2 lessons
    • Final AssessmentQuiz · 5 min
    • Applied AssignmentAssignment · 11 min

Your instructor

Grace Chen, CPA

Grace Chen, CPA

Transaction Advisory Partner

Grace has led quality-of-earnings reviews on more than 150 acquisitions. She shows buyers how to separate real earnings from adjustments and find risk before it finds them.

Business ValuationDue DiligenceQuality of Earnings
All courses by Grace

Downloads included

  • Business Acquisition Due Diligence ChecklistPDF · included with the course

Member reviews

  • “Exactly the level of depth I was looking for. The downloadable tools are excellent.”

    VTVivian Takahashi · Sep 12, 2026

  • “Exactly the level of depth I was looking for. The downloadable tools are excellent.”

    WIWarren Irving · Aug 30, 2026

  • “Good overview; the risk management module was especially valuable.”

    IWImani Whitaker · Aug 23, 2026

  • “Very well organized. The case study was the highlight.”

    STSydney Takahashi · Aug 1, 2026