{"id":39542,"date":"2024-12-27T10:20:00","date_gmt":"2024-12-27T00:20:00","guid":{"rendered":"https:\/\/flippa.com\/blog\/?p=39542"},"modified":"2025-08-20T09:48:38","modified_gmt":"2025-08-19T23:48:38","slug":"strategic-due-diligence-for-online-businesses-insights-from-angel-investor-katie-dunn","status":"publish","type":"post","link":"https:\/\/flippa.com\/blog\/strategic-due-diligence-for-online-businesses-insights-from-angel-investor-katie-dunn\/","title":{"rendered":"Strategic Due Diligence for Online Businesses: Insights from Angel Investor Katie Dunn"},"content":{"rendered":"\n<p><a href=\"https:\/\/www.youtube.com\/@Flippamarketplace\" target=\"_blank\" rel=\"noopener\"><\/a>In the evolving landscape of online business acquisitions, due diligence remains a critical yet often challenging aspect for both buyers and sellers. <\/p>\n\n\n\n<p>Katie Dunn, an angel investor and finance expert with 25 years of commercial real estate finance experience, shares valuable insights on approaching business acquisitions strategically and methodically.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe title=\"Strategic Due Diligence for Online Businesses: Insights from Angel Investor Katie Dunn\" width=\"1080\" height=\"608\" src=\"https:\/\/www.youtube.com\/embed\/N_fuy9jV50w?feature=oembed\"  allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n[et_pb_section global_module=&#8221;44763&#8243;][\/et_pb_section]\n\n\n<h2 class=\"wp-block-heading\">From Real Estate to Angel Investing<\/h2>\n\n\n\n<p>After spending over two decades underwriting commercial real estate deals, Katie transitioned to angel investing, focusing on supporting underrepresented founders in CPG (Consumer Packaged Goods) and tech. <\/p>\n\n\n\n<p>With over 25 investments in her portfolio, her approach combines rigorous financial analysis with a passion for the industries she invests in.<\/p>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">The Foundation of Strategic Investment<\/h2>\n\n\n\n<p>Katie emphasizes several key principles for evaluating business opportunities:<\/p>\n\n\n\n<ol>\n<li>Passion with Purpose<\/li>\n<\/ol>\n\n\n\n<ul>\n<li>Invest in industries you genuinely find interesting<\/li>\n\n\n\n<li>Combine emotional interest with objective analysis<\/li>\n\n\n\n<li>Ensure the business aligns with your long-term goals<\/li>\n<\/ul>\n\n\n\n<ol start=\"2\">\n<li>Core Due Diligence Elements<\/li>\n<\/ol>\n\n\n\n<ul>\n<li>Analyze competitors and market differentiation<\/li>\n\n\n\n<li>Evaluate the business&#8217;s defensive moat<\/li>\n\n\n\n<li>Scrutinize financial metrics specific to the industry<\/li>\n\n\n\n<li>Assess growth potential and improvement opportunities<\/li>\n<\/ul>\n\n\n\n<ol start=\"3\">\n<li>Emotional Balance<\/li>\n<\/ol>\n\n\n\n<ul>\n<li>Remove emotion from the decision-making process<\/li>\n\n\n\n<li>Create objective criteria checklists<\/li>\n\n\n\n<li>Use yes\/no questions to qualify opportunities systematically<\/li>\n<\/ul>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Leveraging Resources Wisely<\/h2>\n\n\n\n<p>For those considering business acquisitions, Katie recommends:<\/p>\n\n\n\n<ol>\n<li>Financial Strategy<\/li>\n<\/ol>\n\n\n\n<ul>\n<li>Consider leverage carefully based on risk tolerance<\/li>\n\n\n\n<li>Develop multiple scenarios (best case, worst case, realistic)<\/li>\n\n\n\n<li>Ensure sufficient cash flow for debt service if using financing<\/li>\n<\/ul>\n\n\n\n<ol start=\"2\">\n<li>Team Building<\/li>\n<\/ol>\n\n\n\n<ul>\n<li>Create a diverse board of advisors with complementary skills<\/li>\n\n\n\n<li>Consider fractional C-suite help for larger operations<\/li>\n\n\n\n<li>Utilize affordable virtual assistance for smaller operations<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Preparing for Investment or Exit<\/h2>\n\n\n\n<p>For business owners looking to attract investment or prepare for exit, Dunn advises:<\/p>\n\n\n\n<ol>\n<li>Documentation<\/li>\n<\/ol>\n\n\n\n<ul>\n<li>Maintain organized financial records from day one<\/li>\n\n\n\n<li>Create quarterly reports tracking progress and goals<\/li>\n\n\n\n<li>Document both successes and failures<\/li>\n<\/ul>\n\n\n\n<ol start=\"2\">\n<li>Foundation Building<\/li>\n<\/ol>\n\n\n\n<ul>\n<li>Choose appropriate business structure<\/li>\n\n\n\n<li>Maintain clear financial records<\/li>\n\n\n\n<li>Create comprehensive data rooms<\/li>\n\n\n\n<li>Develop clear pitch materials<\/li>\n<\/ul>\n\n\n\n<ol start=\"3\">\n<li>Progress Tracking<\/li>\n<\/ol>\n\n\n\n<ul>\n<li>Keep positive feedback and testimonials<\/li>\n\n\n\n<li>Document key decisions and their outcomes<\/li>\n\n\n\n<li>Maintain a business &#8220;diary&#8221; of progress<\/li>\n<\/ul>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Connect with Katie<\/h2>\n\n\n\n<p>For entrepreneurs interested in learning more from Katie and her services, connect with her on LinkedIn:<\/p>\n\n\n\n<p>Katie&#8217;s LinkedIn: <a href=\"https:\/\/www.linkedin.com\/in\/katie--dunn\/\" target=\"_blank\" rel=\"noopener\">https:\/\/www.linkedin.com\/in\/katie&#8211;dunn\/<\/a><\/p>\n\n\n[et_pb_section global_module=&#8221;44763&#8243;][\/et_pb_section]","protected":false},"excerpt":{"rendered":"<p>In the evolving landscape of online business acquisitions, due diligence remains a critical yet often challenging aspect for both buyers and sellers. Katie Dunn, an angel investor and finance expert with 25 years of commercial real estate finance experience, shares valuable insights on approaching business acquisitions strategically and methodically. From Real Estate to Angel Investing [&hellip;]<\/p>\n","protected":false},"author":247,"featured_media":39543,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"off","_et_pb_old_content":"","_et_gb_content_width":"","content-type":"","inline_featured_image":false,"footnotes":""},"categories":[33,28,554,506],"tags":[],"dipi_cpt_category":[],"acf":[],"_links":{"self":[{"href":"https:\/\/flippa.com\/blog\/wp-json\/wp\/v2\/posts\/39542"}],"collection":[{"href":"https:\/\/flippa.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/flippa.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/flippa.com\/blog\/wp-json\/wp\/v2\/users\/247"}],"replies":[{"embeddable":true,"href":"https:\/\/flippa.com\/blog\/wp-json\/wp\/v2\/comments?post=39542"}],"version-history":[{"count":4,"href":"https:\/\/flippa.com\/blog\/wp-json\/wp\/v2\/posts\/39542\/revisions"}],"predecessor-version":[{"id":42380,"href":"https:\/\/flippa.com\/blog\/wp-json\/wp\/v2\/posts\/39542\/revisions\/42380"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/flippa.com\/blog\/wp-json\/wp\/v2\/media\/39543"}],"wp:attachment":[{"href":"https:\/\/flippa.com\/blog\/wp-json\/wp\/v2\/media?parent=39542"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/flippa.com\/blog\/wp-json\/wp\/v2\/categories?post=39542"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/flippa.com\/blog\/wp-json\/wp\/v2\/tags?post=39542"},{"taxonomy":"dipi_cpt_category","embeddable":true,"href":"https:\/\/flippa.com\/blog\/wp-json\/wp\/v2\/dipi_cpt_category?post=39542"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}