How difficult it is to perform a good commercial due diligence in the Middle Market?
How negative it is for a deal when Account financial numbers differs from Management numbers?
In my opinion owners of a sell side only loses when their numbers aren`t coherent and in line with accountability. When you cannot provide a good quality of financial report for Buyers, the worst number should be the one that will feed financial analysis, causing a discount over the target’s fair value.
Owners that are willing to sell their business someday, should have a good quality of internal controls (management reports), because this “little detail” can make they lose money or make the deal inviable.