About This Portfolio
Each company in this portfolio was independently assessed using the Layer8 Due Diligence framework. The assessments reflect realistic buyer-side findings — not seller representations. The same companies appear in the Exit Readiness portfolio assessed from the seller’s perspective, creating a complete picture of each transaction from both sides of the table.
Risk scores are inverted from the ER framework: a score of 3/10 means low risk to the buyer, while a score of 8/10 means critical risk. A company that scores 8.0 on the ER readiness scale may score 3.0 on the DD risk scale — reflecting the same underlying business quality, viewed through opposite lenses.
A well-run pediatric practice with clean financials and strong market position. The primary buyer concern is provider dependency — two physicians generate 70% of patient revenue, and their retention post-close is the most material acquisition risk. PE buyers should structure retention agreements before close.
A strong RIA with clean books and solid AUM growth. Client portability is the central diligence question — advisor relationships are personal, and book transfer assumptions in the purchase price need validation. Strategic acquirers should require a retention period with clawback provisions.
A mid-range cleaning company with consistent revenue but thin documentation. Owner dependency is significant — customer relationships and scheduling are owner-held. An SBA buyer should require a 12-month transition period and confirm key customer contracts are assignable.
An MSP with solid MRR but owner-dependent sales. The technical stack is adequate but the sales function dies with the current owner. PE buyers should model the cost of rebuilding a sales motion post-close as a reduction to the purchase price.
A healthcare tech company with regulatory and IP complexity. HIPAA compliance posture needs independent verification, and IP ownership for contractor-developed components is unclear. PE buyers should require a technical and legal specialist review before LOI.
A trades company where the owner is the business. Revenue, customer relationships, and operational knowledge are entirely concentrated in one person. An SBA buyer is effectively buying themselves a job — the transition period and knowledge transfer plan are the most critical deal terms.
A solo CPA practice where client book portability is the only asset being acquired. Client relationships are personal to the owner, and the assumption that they transfer is the central diligence risk. An SBA buyer should structure an earnout tied to client retention at 12 and 24 months post-close.
A two-partner law firm where both partners hold the client relationships. Book portability is the primary acquisition risk — clients follow attorneys, not firms. A strategic acquirer needs retention agreements with both partners as a condition of close, not a post-close aspiration.
A seasonal landscaping business with informal financials and significant owner dependency. Labor compliance risk is elevated — I-9 documentation and worker classification need independent review. An SBA buyer should budget for employment counsel as part of diligence costs.
A small break-fix MSP where the owner is the primary engineer. MRR is limited and the revenue model is transactional. A strategic acquirer buying for customer relationships should validate that those relationships are with the business, not the individual, before pricing any synergy premium.
A security integrator with project-based revenue and no recurring contracts. Customer revenue risk is the highest in the portfolio — no contract provides for recurring revenue post-close. A strategic acquirer should model day-one revenue as zero recurring and build the acquisition price around demonstrable backlog only.
The highest-risk company in the portfolio. Material gaps across all eight domains — owner dependency, technology debt, customer concentration, and thin financial documentation all present simultaneously. A PE buyer should either walk or structure with significant escrow, earnout, and specialist remediation requirements built into the LOI.