Mike Jerman

STOP PICKING YOUR FINANCIAL DILIGENCE PROVIDER BASED ON SOCIAL MEDIA. Enough's enough. It's on us as real diligence providers to get this message out and myself and the Hollywell team are just bad at marketing and getting the word out. We are seeing just awful QofE deliverables on smaller deals (Traditional search and ETA). No, a basic cash proof and a shiny PDF does not pass muster. Regardless if you choose Hollywell or not, make sure the your QofE provider has real deal team audit and diligence experience. THERE IS NO SUCH THING AS QofE Lite. It's a crap marketing term, it is and always should have been full diligence just for smaller deals. Hollywell's FDD team ALL CAME FROM BIG-4 AUDIT AND DEALS. And we don't send the second half bill if we find something that leads to you walking away from the deal. Seriously, skimping on financial diligence when about to spend millions alongside a life changing event is nonsense. GET REAL DILIGENCE DONE DAMMIT. Alright, we'll do better about getting the message out more consistently. Getting off my soap box now. Go get 'em, searchers.

@EndresenHeather @Hollywellteam Heather, well noted. We walk through this in depth on calls with our PE clients on frequent calls. Am trying to think of the best way to get this message out on X without putting people to sleep. Will work on it and revert.

While I generally agree with what you’re saying, some messaging that might resonate: cost is determined by complexity of the work, not size of the deal, scope of work can be customized to focus on key risks, maybe make an infographic with your recommended scope of work along with why each piece is important. I think buyers just need more education on what is involved and how it informs/protects them.

STOP PICKING YOUR FINANCIAL DILIGENCE PROVIDER BASED ON SOCIAL MEDIA. Enough's enough. It's on us as real diligence providers to get this message out and myself and the Hollywell team are just bad at marketing and getting the word out. We are seeing just awful QofE deliverables on smaller deals (Traditional search and ETA). No, a basic cash proof and a shiny PDF does not pass muster. Regardless if you choose Hollywell or not, make sure the your QofE provider has real deal team audit and diligence experience. THERE IS NO SUCH THING AS QofE Lite. It's a crap marketing term, it is and always should have been full diligence just for smaller deals. Hollywell's FDD team ALL CAME FROM BIG-4 AUDIT AND DEALS. And we don't send the second half bill if we find something that leads to you walking away from the deal. Seriously, skimping on financial diligence when about to spend millions alongside a life changing event is nonsense. GET REAL DILIGENCE DONE DAMMIT. Alright, we'll do better about getting the message out more consistently. Getting off my soap box now. Go get 'em, searchers.

@tom_sietsema Tom, this typo's on me. We're nixing this post was supposed to be for < $1m ETA deals.

@JermanMichael Are you resetting price?

No, equity distributions are not an add back. It's double counting of profits. We just hung up on a broker that kept insisting otherwise. Nonsense.

@guessworkinvest Such a well put together, thoughtful read. Well done.

Do you have a punchable face? Well, you may be a good fit as an entrepreneur. Today's Big Deal Small Business post discusses how great small business owners have to get really good at taking a punch, feeling the impact, and pressing forward. Link below!

@tom_sietsema Our prices have been the same for some time.

Day 2 of LIVE—Tampa focused on the nuances of deal structuring and due diligence. @SMB_Attorney of @smblawgroup walked the cohort through legal diligence and documentation. The three buckets of findings (deal killers, things to negotiate into the PA, things to fix post-close), why asset deals beat stock deals on successor liability, and the real reps and warranties framework SBA buyers actually live with. @JermanMichael and Adam Webster of @Hollywellteam ran through QofE. In their hundreds of engagements, can you guess how often they have seen EBITDA come in above the CIM? The QofE is your home inspector, and the line-by-line P&L review, WC scrub, and addback validation are what keep you from buying someone else's mess. @drew_eckman tore apart addbacks with his 3-part question protocol: (1) one-time or recurring, (2) will the expense exist post close, and (3) can it be documented. Read more in his past thread here: x.com/drew_eckman/st…. Drew, @sbabmarks, and I ran a live modeling scenario using our financial modeling template where small groups pitched an actual deal, trying to find the price and terms that work for all four parties at the table: buyer, seller, broker, and lender. Watching searchers wrestle with DSCR thresholds and seller note standby periods in real time is where the playbook clicks. Day 3 of Cohort #20 is officially underway.

@JackieHirsch_ @Sam_Rosati Jackie, we look for you at any and all. We wish we had a quarter of your energy.

In this photo @Sam_Rosati I’m on the right telling @JermanMichael and Adam Webster about a company where my friend works…and one of the employees stole $5MM worth of printer cartridges and small tech item where he would then sell them on EBay. The auditors didn’t catch fake receipts, extra accounts, a Covid era supplies account still active and growing. Today, @SMBootcamp_ the famous @SMB_Attorney will be speaking! Followed by @rosaticorp. The dinners foster real connections between the MBA’s, the former PE’s, the C-Suite’s, and the Navy Seals all coming to buy businesses.

@SMB_Attorney @Sam_Rosati @SMBootcamp_ @mbeckham352 @drew_eckman @sbabmarks Yes, we do always look this grumpy. Our job is to vet your deals. Let us be fair and stern for you searchers.

@Sam_Rosati @SMBootcamp_ @mbeckham352 @JermanMichael @drew_eckman @sbabmarks

Look at these workaholics! Working hard at @SMBootcamp_ … @mbeckham352 @JermanMichael @drew_eckman @SMB_Attorney @sbabmarks

Adam, our diligence leader, and I will be speaking @SMBootcamp_ again this week. Hands down the best way to kick deal information asymmetry's tail.

@1JoeSpringsteen Helps when your client listens. Joe is awesome, and listened.

ETA searchers if you do lock in that LOI, get @JermanMichael on your calendar asap. Getting a jump start on financial DD dictated the rest of my diligence. We were ready to close inside 60 days.

@SMB_Attorney @KHendersonCo @smblawgroup You were already the managing partner of our hearts. Well done.

Won again!!! Managing Partner of the Year (Small Firm) 🔥 @smblawgroup

Translating LIV golf to a buy side target- yes it would be a diligence red flag to see overpaid contractors working 3/4 weeks having never generated positive gross margin let alone operating income. Come on back fellas let's see the best every week again.

@1JoeSpringsteen Helps when your client listens. Joe is awesome, and listened.

Just leaving @SMB_ash. So many great searchers potentially making the leap. Enjoy the journey, it can be rough, but it certainly drives purpose and comfort zone expansion.

@patrickdichter Can't we just work together and you do the tweeting? See you tomorrow and Thursday!

@JermanMichael You gotta tweet some of your “fraud or not” stories

If you buy a $1M house and waive an inspection you might have a $30-50k problem at worst. If you buy a $2M business and don’t do a QOE you could have a $100k, $500k, or 1M problem. Or bankruptcy.

Before we start posting live updates (starting Wednesday), here is the rest of our lineup! Quite a few will be on the SMBash stage for the first time. As the word gets out about ETA and SMB ownership, folks that have been in this space for years step up to share their industry knowledge. So, who haven't we mentioned yet? Let's get to it! Jacob Hall will be our keynote speaker Friday morning! Don't sleep in! Following that we have a packed schedule, ending at 2:30 so attendees can make their way home for a restful weekend. Don't forget to look over your notes and reflect on everything you learned! Thanks to all of our amazing panelists, we can't wait to learn from you! @justinroffmarsh , Joseph Cabrera, @SuccessWithJake , @JermanMichael , Danny Payne, @chasemurdock , @SMB_Attorney , and @AdamMarkleySMB . More generous sponsors to mention too - more companies that believe in the power of sharing knowledge freely, @Hollywellteam , @smblawgroup , and Elite Video!

Good to see the turnout in Tampa and to celebrate with a crowd again. #PLinUSA #PremierLeagueLive

@1JoeSpringsteen Love a good Cuban sandwich.

My son just got followed by Mark Cuban on this post. I haven’t paid him allowance like ever. Coop is one of those kids that started a lemonade stand at age 6 and never looked back. instagram.com/reel/DXKtCWZER…