What Is SMB Diligence?
Due diligence is one of the most important—and most expensive—parts of buying a small business. Between hiring an M&A attorney to draft and review purchase agreements and engaging a CPA for a Quality of Earnings analysis, first-time buyers can easily face $20,000 to $50,000 or more in professional fees before they even close the deal. For many SMB acquisitions in the $500K to $5M range, those costs can eat into the economics of the transaction and discourage buyers from doing thorough DD at all.
SMB Diligence was created to solve exactly this problem. The firm provides legal and financial due diligence services exclusively for small business buyers through a vetted network of M&A lawyers and Quality of Earnings professionals—all at fixed rates that are 30-50% below typical market pricing.
Their website is smbdiligence.com, and their model is straightforward: transparent pricing, vetted professionals, and significant savings for the buyer.
How SMB Diligence Works
SMB Diligence operates as a curated marketplace that connects small business buyers with pre-vetted due diligence professionals. Rather than hiring their own team of attorneys and CPAs, they have built a network of experienced practitioners who specialize in small business transactions and have agreed to provide services at preferred rates.
Here is how the process works:
- Initial consultation: You discuss your deal with the SMB Diligence team, who assess your needs
- Provider matching: They match you with the right M&A attorney and/or QoE professional from their vetted network
- Fixed-rate pricing: You receive clear, upfront pricing with no hidden fees or surprise invoices
- Execution: The matched professionals conduct your due diligence, with SMB Diligence providing coordination and oversight
- Closing support: Legal and financial work products are delivered to support your closing
SMB Diligence Service Packages
Legal Package
The legal package covers the essential legal work required for an SMB acquisition, typically at 30-50% below what you would pay going directly to an M&A law firm. Services include:
- Review of the seller’s legal documents and corporate records
- Drafting and negotiation of the purchase agreement
- Ancillary transaction documents (assignment agreements, consents, etc.)
- Seller note documentation and structuring
- Employment agreement drafting for key employees or the seller
- Non-compete and non-solicitation agreements
For most SMB acquisitions, the purchase agreement and seller note are the two most critical legal documents. Having an experienced M&A attorney handle these—rather than a general practice lawyer who does one business sale per year—can save you from costly mistakes and unfavorable terms.
Quality of Earnings (QoE) Package
The QoE package provides the financial due diligence that every serious buyer needs, again at 30-50% below typical market rates. The analysis includes:
- Overview of recent financial performance and trends
- Analysis of growth drivers and revenue projections
- Cost and expense analysis with normalization adjustments
- Working capital health assessment
- Balance sheet analysis and capital structure review
- Relevant ratio analysis (profitability, liquidity, efficiency)
A proper QoE is not optional for serious buyers. It is the single most effective tool for validating (or disproving) the seller’s claimed earnings, identifying financial red flags, and ensuring you pay a fair price. The fact that SMB Diligence makes this accessible at a significantly lower price point means more buyers can afford to do it properly.
The Value Proposition: 30-50% Below Market
The headline claim—fixed rates that are 30-50% below what traditional firms charge—deserves closer examination. How do they achieve this?
- Volume-based pricing: By aggregating demand across many SMB buyers, SMB Diligence negotiates preferred rates with their network of professionals
- SMB specialization: The attorneys and CPAs in their network focus on smaller transactions, which are inherently less complex than middle-market deals. This allows for more efficient execution and lower costs
- Fixed-rate structure: By eliminating hourly billing uncertainty, professionals can plan their work more efficiently and pass savings to buyers
- Reduced business development costs: Professionals in the network receive a steady stream of clients through SMB Diligence, reducing their own marketing and sales expenses
The fixed-rate model is a significant advantage for buyers. Traditional M&A law firms typically bill hourly, and costs can escalate rapidly—especially if the deal gets complicated or negotiations drag on. With SMB Diligence, you know your costs upfront, which makes budgeting for the acquisition much more straightforward.
What Buyers Are Saying
The testimonials on SMB Diligence’s website tell a consistent story:
- One buyer reported that the QoE analysis uncovered $100,000 in additional SDE that the seller had not properly accounted for—essentially paying for the entire DD engagement many times over
- Buyers consistently praise the quality of both the legal and financial professionals they are matched with
- The coordination provided by the SMB Diligence team (notably Austin) is frequently highlighted as a differentiator
- The firm is recommended by the SMB Deal Hunter community, a well-known group of acquisition entrepreneurs
Who Is SMB Diligence Best For?
- First-time SMB buyers who need both legal and financial DD but are cost-conscious
- SBA loan buyers who need a QoE to satisfy lender requirements without spending $15,000+
- Acquisition entrepreneurs doing multiple deals who want a reliable, cost-effective DD partner
- Buyers of businesses in the $500K to $5M range where traditional DD costs represent a significant percentage of the deal value
- Self-funded searchers who need to be strategic about how they allocate their acquisition budget
Strengths and Considerations
Strengths
- Significant cost savings: 30-50% below market rates is substantial—potentially saving $5,000 to $15,000+ per transaction
- Fixed-rate pricing: No hourly billing surprises—you know your costs upfront
- Vetted professionals: The network is curated, not open to anyone with a law degree
- SMB-exclusive focus: Every professional in their network specializes in small business transactions
- One-stop shop: Legal and financial DD through a single point of contact
- Industry endorsements: Recommended by the SMB Deal Hunter community
- Coordination support: The SMB Diligence team manages the process, reducing the burden on the buyer
Considerations
- Network model: You are working with independent professionals matched by SMB Diligence, not an in-house team. Quality consistency depends on the strength of their vetting process
- Scope limitations: Fixed-rate packages cover standard transaction elements. Highly complex or unusual deal structures may require additional work at extra cost
- No operational or technical DD: SMB Diligence focuses on legal and financial due diligence only—you will need other providers for operational, market, or technical DD
Our Honest Assessment
SMB Diligence addresses one of the biggest pain points in the SMB acquisition market: the cost of professional due diligence. Too many first-time buyers either skip DD entirely (dangerous) or hire professionals who are not experienced with small business transactions (wasteful). By creating a curated network of SMB-focused professionals and negotiating volume-based pricing, SMB Diligence makes proper due diligence accessible to a much broader range of buyers.
The fixed-rate model is genuinely buyer-friendly. In our experience, hourly billing for M&A legal work is one of the most stressful aspects of buying a business—you never know if a $10,000 estimate will turn into $25,000 by closing. Fixed rates eliminate that uncertainty and allow buyers to make informed decisions about their total acquisition costs.
The key question for buyers is whether the professionals in SMB Diligence’s network deliver the same quality as a top-tier M&A firm. Based on the testimonials and their endorsement by the SMB Deal Hunter community, the answer appears to be yes—at least for standard SMB transactions. For highly complex deals, unusual structures, or specialized industries, buyers may still want to engage specialists directly.
Overall, SMB Diligence is a smart choice for cost-conscious buyers who want professional legal and financial DD without paying premium rates. The savings are real, the professionals are vetted, and the fixed-rate structure provides peace of mind throughout the process.
Financing Your SMB Acquisition with GoSBA Loans
You have found the right business. You have completed your due diligence with SMB Diligence. Now you need the right financing to close the deal. GoSBA Loans is here to help.
GoSBA Loans is a completely free SBA loan brokerage service that matches small business buyers with the best lender for their specific deal. Here is what you get:
- 50+ lender network: GoSBA works with over 50 SBA lenders who specialize in business acquisitions
- $320M+ funded: A proven track record of getting deals closed across every industry and deal size
- 100% free: GoSBA is compensated by lenders—the service costs you nothing
- Free business plan: Every client receives a professionally written business plan worth $2,500 to $5,000, included at no charge
- Streamlined process: GoSBA handles the lender matching, application packaging, and ongoing communication so you can focus on your acquisition
Combining the cost savings from SMB Diligence with the free service from GoSBA Loans means you can keep more of your capital for the acquisition itself—rather than spending it on professional fees and loan broker commissions.
Ready to fund your acquisition? Contact GoSBA Loans today for a free, no-obligation consultation. Find out how much SBA financing you qualify for and get your free business plan to support your deal.
