Diligence is the most demanding stretch of a sale. Founders who prepare in advance close faster and at better prices.
Quality of earnings
An accounting firm hired by the sponsor will rebuild your financials, normalize EBITDA, and verify revenue recognition. Be ready to defend every add-back.
Legal
Contracts, IP, employment matters, litigation, and corporate structure. Clean up old issues before diligence starts.
Commercial
Customer interviews, market sizing, competitive position. Choose customer references carefully and warn them in advance.
Operational
Systems, processes, key person risk, supplier relationships. Sponsors look for both upside and integration risk.
What sponsors usually skip
Detailed environmental or insurance diligence for smaller deals; deeply technical product diligence outside the sponsor's domain.
If you are evaluating a transaction in this space and want a candid second look, Solender Capital is happy to compare notes. Reach out through our contact page and share what you are working on.