What Is Rapid Diligence?
If you are buying a small or medium-sized business, one of the most critical steps in the acquisition process is due diligence. Get it wrong, and you could end up overpaying for a business riddled with hidden problems. Get it right, and you set yourself up for a smooth transition and long-term success. That is exactly where Rapid Diligence comes in.
Rapid Diligence is a due diligence firm built specifically for SMB buyers. Unlike large consulting firms that cater primarily to middle-market and enterprise deals, Rapid Diligence focuses exclusively on the unique challenges and risks that come with acquiring smaller businesses—typically those in the $500K to $10M range. The company was founded by acquisition entrepreneurs who have been through the process themselves, which gives them a practical, buyer-first perspective that many traditional DD providers lack.
Their website is straightforward: rapiddiligence.com. They offer free consultations, and they are refreshingly honest about what they can and cannot help with—if a deal falls outside their expertise, they will tell you upfront rather than taking your money anyway.
The 5 Components of Rapid Diligence
What sets Rapid Diligence apart from many competitors is their structured, multi-component approach to due diligence. Rather than offering a one-size-fits-all package, they break their analysis into five distinct pillars:
1. Operational Due Diligence
This component examines the day-to-day operations of the target business. Key areas include:
- Workflow and process documentation
- Employee roles, responsibilities, and key-person dependencies
- Vendor and supplier relationships
- Customer concentration risks
- Standard operating procedures (SOPs) and their quality
For many SMB acquisitions, operational risk is the number one killer. A business that depends entirely on the owner for sales or fulfillment is fundamentally different from one with documented processes and a capable team. Rapid Diligence digs into this distinction.
2. Financial Due Diligence
The financial DD component goes beyond simply reviewing tax returns and P&L statements. Rapid Diligence analyzes:
- Revenue trends and sustainability
- Expense normalization and add-backs
- Working capital requirements
- Cash flow analysis and projections
- Debt obligations and contingent liabilities
This is where many first-time buyers get tripped up. Sellers often present financials in the most favorable light possible, and without proper scrutiny, buyers can end up paying based on inflated earnings. Having a team that knows what to look for is invaluable.
3. Market Due Diligence
Understanding the competitive landscape and market dynamics is essential for any acquisition. This component covers:
- Industry trends and growth projections
- Competitive positioning and market share
- Customer demographics and buying patterns
- Regulatory environment and potential changes
- Barriers to entry and competitive moats
Many SMB buyers skip market DD entirely, assuming that because a business is profitable today, it will remain so. Rapid Diligence helps you understand whether you are buying into a growing market or a declining one.
4. Strategic Due Diligence
This pillar evaluates the long-term strategic value of the acquisition:
- Growth opportunities and expansion potential
- Synergies with existing businesses (for portfolio buyers)
- Brand value and reputation assessment
- Strategic fit within your investment thesis
- Exit strategy viability
5. Technical Due Diligence
Particularly relevant for online and technology-enabled businesses, this component examines:
- Technology stack and infrastructure
- Code quality and technical debt (for software businesses)
- Website performance, SEO health, and traffic analysis
- Cybersecurity posture and data protection
- Scalability of existing systems
For online businesses—eCommerce, SaaS, content sites—the technical DD component is arguably the most important. A business might look great on paper, but if the underlying technology is fragile or outdated, you could be inheriting a ticking time bomb.
Who Is Rapid Diligence Best For?
Rapid Diligence is best suited for:
- First-time buyers who need guidance through the entire DD process
- Search fund operators and acquisition entrepreneurs looking at SMB deals
- Online business buyers (eCommerce, SaaS, content sites) who need technical expertise
- SBA loan buyers who need thorough DD to satisfy lender requirements
- Serial acquirers who want a reliable, repeatable DD process
Strengths and Considerations
Strengths
- Founded by acquisition entrepreneurs: They understand the buyer’s perspective firsthand
- Comprehensive 5-component approach: Covers operational, financial, market, strategic, and technical DD
- SMB-focused: Pricing and approach tailored to smaller deals
- Honest about limitations: They will tell you if a deal is outside their expertise
- Legal partnerships: For US-based clients, they partner with M&A law firms specializing in SMB acquisitions
- Free consultations: You can discuss your deal before committing
Considerations
- No in-house legal: Legal DD is handled through partner firms, which means coordination across teams
- Traditional SMB coverage varies: Their depth of coverage depends on the industry—some sectors may not be fully covered
- Newer firm: May not have the decades-long track record of larger consultancies
Our Honest Assessment
Rapid Diligence fills an important gap in the SMB acquisition ecosystem. Most large DD firms are not interested in deals under $10M, and many SMB buyers end up either skipping due diligence entirely or cobbling together a patchwork of freelancers and generalist accountants. Rapid Diligence offers a structured, professional alternative at a price point that makes sense for smaller acquisitions.
The fact that the founders are acquisition entrepreneurs themselves is a genuine differentiator. They are not just checking boxes—they understand what actually matters when you are putting your own capital on the line to buy a business. Their willingness to be upfront about what they can and cannot cover is also refreshing in an industry where many providers will take on any engagement regardless of their actual expertise.
If you are buying an online business, Rapid Diligence is particularly strong given their technical DD capabilities. For traditional brick-and-mortar SMB acquisitions, their coverage may be more variable depending on the industry, so it is worth having that initial consultation to understand exactly what they can deliver for your specific deal.
Financing Your SMB Acquisition with GoSBA Loans
Great due diligence is only half the equation—you also need the right financing to close your deal. That is where GoSBA Loans comes in.
GoSBA Loans is a free loan brokerage service that connects small business buyers with the right SBA lenders. Here is what makes GoSBA different:
- 50+ lender network: Access to over 50 SBA lenders, ensuring you get the best terms for your specific deal
- $320M+ funded: A proven track record of getting deals done
- 100% free service: GoSBA is compensated by lenders, so there is never a cost to you
- Free business plan: Every client receives a professionally written business plan—a $2,500 to $5,000 value—completely free
- Expert guidance: The GoSBA team understands SBA lending inside and out, helping you navigate the process from application to closing
Whether you are using Rapid Diligence for your DD or any other provider, having the right financing partner can make or break your acquisition. GoSBA Loans has helped hundreds of buyers secure the funding they need to close deals with confidence.
Ready to get started? Contact GoSBA Loans today for a free consultation and find out how much you qualify for. There is zero cost and zero obligation—just expert guidance to help you fund your business acquisition.
