top of page
Search

Hidden Landmines in Acquisitions: SME Financial Due Diligence

The most dangerous problems in SME deals aren’t in the pitch, they’re in the books.


In this post, we unpack the most overlooked financial red flags in SME financial due diligence that derail buyers post-close:


  • Revenue concentration and phantom contracts

  • Working capital manipulation before closing

  • CapEx deferrals and accounting games

  • EBITDA add-backs that don’t stand up in due diligence


Even experienced investors can get caught if they don’t know where to look.


Swipe through or download the PDF for offline reading.


At Archimax, has combined insights from leading M&A practitioners to help you build a smarter checklist and avoid these traps.


Sources: PwC, MarktoMarket, UK200Group, PitchBook, DueDilio, and Archimax Research


  • SME financial due diligence guide for hidden acquisition risks”
  • Uncover off-balance-sheet risks in SME financials
  • How founder behavior reveals SME deal risks
  • 6 key SME financial due diligence checks
  • Common SME financial red flags in founder-led businesses
  • Due diligence questions that expose cash flow truths
  • Advanced tactics for SME financial due diligence
  • Pressure-testing SME deals for post-close stability


Comments

Follow Us

  • LinkedIn

Nothing on this website constitutes investment advice, a recommendation, an offer to sell, or a solicitation or invitation to invest in any security, investment product, or financial instrument. The B.O.R.I.N.G. Investment Club is a private, invitation-only community intended solely for eligible persons. Access to opportunities, materials, and membership is subject to eligibility assessment and approval by Archimax.

 

All investments involve risk, including the possible loss of capital. Past performance is not a reliable indicator of future results. Any prospective investor should seek independent financial, legal, tax, and other professional advice before making an investment decision.

 

The B.O.R.I.N.G. Investment Club is a trading name of Archimax Global Solutions Ltd.

 

Archimax Global Solutions Ltd (FRN 1054833) is an Appointed Representative of Sturgeon Ventures LLP (FRN 452811), which is authorised and regulated by the Financial Conduct Authority.

 

Archimax Global Solutions Ltd is registered in England and Wales under company number 16113033. Registered office: 71-75 Shelton Street, Covent Garden, London, WC2H 9JQ, United Kingdom.

© 2026 Archimax Global Solutions Ltd

bottom of page