15/10/2026
One of the things I look for when conducting due diligence is whether the business has properly documented its relationships with its key customers.
On a recent acquisition of a construction business, I noticed that a number of contracts with the companyās major customers had either expired or never been signed.
That might sound like an administrative issue.
It wasn't.
A significant proportion of the business's revenue came from a small number of key customers.
If those relationships were not properly documented, the buyer could be taking on more risk than they realised.
There was also another issue to consider.
Some customer contracts contain change of control provisions, which can give a customer the right to terminate the contract when the business changes ownership.
So, the work now includes getting signed contracts in place, reviewing the latest terms and obtaining written waivers where customers have relevant termination rights.
It is a good example of why due diligence is about more than checking whether the paperwork exists.
It is about understanding what that paperwork means for the business being acquired, and what needs to happen before the buyer can proceed with confidence.
Sometimes, one of the most important findings in a transaction is not a complicated legal issue.
It is something that should have been dealt with long before the sale was ever contemplated.
There is often more to a business acquisition than meets the eye. Follow me for more examples of my work in M&A.
[Picture: Lia & I in Greece]