Write the original thesis
State the target customer, revenue durability, owner role, management needs, and expected source of improvement. Identify which claims come from seller materials and which have independent support. Make the thesis short enough to revisit before every major commitment.
Assign tests to assumptions
Connect each assumption to records and interviews. Customer durability may require retention data and contract review. Owner independence may require a role map and staff discussions. Margin claims need reconciled financial information and a realistic replacement-cost model.
Record disconfirming evidence
Log facts that weaken the thesis with the same care used for positive findings. Note what changed, its financial effect, and the required response. Do not hide a material issue inside a long diligence report that nobody reads before the decision meeting.
Use a decision checkpoint
Before signing, funding, or waiving a condition, review the thesis, unresolved risks, downside cash flow, and available alternatives. Record the reason to proceed, renegotiate, or stop. A disciplined no can be a successful acquisition process even when no transaction closes.
Buyer Checklist
- State the thesis before diligence
- Assign evidence tests
- Record negative findings
- Update the downside case
- Keep decision checkpoints
Frequently Asked Questions
What makes a decision log different from a diligence checklist?
A checklist tracks tasks. A decision log explains how findings affect the reasons to buy, the price, and the decision to proceed.
This guide is educational and does not replace transaction-specific legal, tax, accounting, lending, insurance, or valuation advice from qualified professionals.