The Due Diligence Trap: Why Your Deal Might Fall Apart | Dustin Van Orman!

📅 July 28, 2026 ⏱️ 39:33 🎤 Lance Bachmann, Dustin Van Orman, Bernie Ollila

Chapters

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0:33

Build It to Sell It Conference

An invitation to the Build It to Sell It 2026 conference for home service business owners to learn how to scale and create real value.
0:56

Buyer's Perspective on Deals

Dustin Van Orman explains that M&A and PE guys look for reasons not to buy a company during due diligence, scrutinizing every detail to ensure a sound investment.
3:24

The Power of Teamwork

Dustin shares a personal story of a motorcycle accident that highlighted the critical importance of having a strong team to rely on in business.
6:06

First Impressions Matter

The discussion emphasizes how the physical environment of a business, from the parking lot to employee appearance, creates a crucial first impression for potential buyers.
8:24

Reasons Deals Fall Apart

Dustin details common red flags that cause buyers to walk away, including inflated numbers, poor cultural fit, unrealistic seller expectations, and lack of operational excellence.
24:35

Seller's Post-Acquisition Role

The hosts discuss the challenge of sellers becoming less engaged after receiving a large payout and the importance of a strong leadership team for continuity.
26:43

Equity for Team Members

Dustin and Lance advocate for giving equity to team members, believing it drives performance, fosters loyalty, and aligns everyone for collective success.
29:35

Rolling Up Money in Acquisitions

Dustin encourages rolling up money into a platform business during an acquisition, seeing it as a significant opportunity for further reward and growth, provided due diligence is done.
33:58

Search Funds and Earn-Outs

Dustin expresses caution about selling to search funds due to their potentially detached approach and discusses the pros and cons of earn-outs, suggesting they can be effective for bridging valuation gaps.

Speakers

Lance Bachmann

Host

Dustin Van Orman

Any Hour

Bernie Ollila

VP of sales at Titan Pro Technologies

Key Takeaways

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Cleanliness and professionalism in your physical space, from the parking lot to technician uniforms, signal a well-run operation to potential buyers.

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Inflated financials or 'fluffed numbers' will quickly be identified during due diligence, eroding trust and potentially ending a deal.

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A strong, capable leadership team that can operate independently of the owner is crucial for a successful sale and continuity post-acquisition.

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Implementing robust systems and processes (like a CRM) and moving away from paper-based operations reduces the 'heavy lift' for buyers, making your business more attractive.

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Cultivate a positive and professional work environment; a 'fish tank' that allows employees to rise will be evident to buyers and indicates a healthy business.

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Building strong relationships and demonstrating a willingness to partner, rather than just seeking a quick exit, can be key to successfully navigating acquisition discussions.

✦

Consider offering equity to key team members; this incentivizes performance and creates a shared stake in the business's success, which is appealing to buyers.

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