Craig Checks In: Thoughts on FanMail Questions from Listeners

In this solo episode of The Close, Craig Castelli tackles listener questions covering timely M&A topics. He discusses how the government shutdown impacts SBA financing and government contractor deals, explains reverse due diligence strategies for sellers to properly vet potential buyers, and breaks down the value of conducting sell-side quality of earnings reports. Craig provides practical insights on evaluating rollover equity offers, checking buyer references, and understanding when professional financial analysis is worth the investment. This Q&A format delivers actionable advice for business owners navigating the complexities of selling their companies in today's market environment. Explore the full episode page to watch a video or read a transcript of the full interview: https://caberhill.com/podcast/craig-checks-in-government-shutdown-reverse-due-diligence-sell-side-quality-of-earnings-report

Chapters

• 0:00 Welcome & Government Shutdown Impact on M&A
• 1:37 SBA Financing Delays During Shutdown
• 3:03 Government Contracting Business Challenges
• 4:22 Market Uncertainty and Deal Pipeline Outlook
• 5:40 Reverse Due Diligence: Vetting Your Buyer
• 6:39 Screening Qualified Buyers and Financial Verification
• 7:59 Getting References and Evaluating Buyer Transparency
• 11:33 Understanding Rollover Equity Valuations
• 13:34 Red Flags in Buyer Communications
• 14:45 Comparing Competing Offers: Cash vs. Equity
• 17:12 Sell-Side Quality of Earnings Overview
• 18:37 Cost and Complexity Factors for Quality of Earnings
• 21:20 Benefits of Conducting Sell-Side Quality of Earnings
• 22:36 When Quality of Earnings May Be Less Necessary
• 25:16 Why Investment Bankers Recommend Quality of Earnings
• 26:29 Closing Remarks and Contact Information