Due Diligence and the Business Transaction: Getting a Deal Done

Due Diligence Plan for KMF Franchisee, LLC, Investment

I. Transaction Overview

1. Nature of the transaction: acquisition of an ownership interest in an LLC, KMF Franchisee, LLC, which currently has two partners
2. Asset to be acquired: 33% of the membership interest in an LLC
3. Nature of the business: owns four Rocky Robbins Ice Cream Bar franchises
4. Consideration: $225,000 (all cash)
5. Personnel: multiple full- and part-time employees; manager of all four stores is in last year of contract.
6. Initial deal issues:
   • a.  Terms of the franchise agreements for the stores
   • b.  Potential competition from former partner
   • c.  A $100,000 loan is held by the former business ...