Due Diligence: The Exam You Must Pass to Sell
Due Diligence is when the buyer checks if you are lying. They check code, bank statements, and legal IP ownership. Have a "Data Room" ready.
What is Data Room?
Data Room is A secure Google Drive folder containing all your contracts, tax returns, IP assignments, and technical docs.
The 3 Core Benefits
Speed to Close
Time kills all deals. If you take 2 weeks to find a document, they might change their mind. A clean Data Room closes deals fast.
No Retrading
If they find a "surprise" (e.g. you don't own the logo), they will lower the price ("Retrade"). Diligence protects your price.
Confidence
An avid buyer sees a messy room and thinks "What else is broken?" A clean room builds trust.
The Checklist
IP Assignment
Did every contractor sign a document saying YOU own the code? If not, go get them to sign it now.
Cap Table
Who owns the shares? Is it clean? No "handshake deals" with old co-founders who disappeared.
Churn Analysis
They will look at Cohorts. If your churn is increasing, you are in trouble. Have an explanation ready.
Code Scan
They might run a scanner (like Black Duck) to check for Open Source license violations (GPL). Audit dependencies.
Metric Audits
Use tools like ProfitWell or Baremetrics to have clean, exportable reports. Don't rely on your own Excel sheets.
Scrambling vs. Prepared
| Feature | Scrambling | Prepared |
|---|---|---|
| Docs | Missing | Indexed |
| Buyer Mood | Suspicious | Impressed |
| Deal Probability | 50% | 90% |
Frequently Asked Questions
How deep do they look?
Depends on deal size. For $100k, they check Stripe. For $100M, they check every line of code and every email.
Can I hide bad news?
NO. That is fraud. If you get sued later, you lose everything. Disclose everything. "Disclosure Schedule" protects you.
Who sees the data?
Only the buyer and their lawyers. Ensure the NDA is signed first.
What makes a launch channel high intent?
High-intent channels have users actively searching for solutions, not just browsing a feed.
How many channels should I launch on?
Start with 3-5 strong channels, measure conversions, then expand to 10-12 over time.
How do I avoid launch fatigue?
Stagger your launches and reuse assets so each channel gets a focused push.
What should I measure after launch?
Track qualified signups, backlinks, and demo requests, not just raw traffic.
How does Mesh of Growth fit with other platforms?
Use Mesh for compounding reviews and backlinks while other platforms provide short-term spikes.
Ready to get instant traffic from trusted founders?
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