By: Gershon Morgulis | Founder & Partner
When you are acquiring a business, the numbers on the surface rarely tell the whole story. In the article “Inside the Deal: Insights From Business Acquisition Pros, Part 3”, Jerry Freedman, Founder of Freedom Business Financing, speaks with Gershon Morgulis, Founder and Partner of Imperial Advisory, CFOs about why financial due diligence is one of the most powerful tools a buyer can use. Strong diligence goes far beyond reviewing tax returns or glancing at the P&L. It digs into trends, cash flow realities, customer concentration, hidden liabilities, and whether the business’s earnings are truly repeatable under new ownership. As Gershon explains, quality of earnings work and a careful balance sheet review often uncover issues the seller never mentioned, from inflated addbacks to receivables that may never convert to cash.
The real value comes in how you use these findings. A thorough due diligence process gives buyers the leverage to negotiate price, restructure the deal, or walk away entirely if the risks outweigh the reward. It turns uncertainty into clarity and clarity into better decisions. At Imperial Advisory, this is why we partner with buyers early in the acquisition cycle: to validate what is real, surface what is not, and help structure smarter, safer deals.