Buyers Black Book · @lawyer4smbs · C1 of the 6C Deal Operating System™
The Crash Test™
Pre-LOI Deal Risk Assessment Scorecard

How to use: Run both tracks cold, before emotional investment sets in. Mark GO, CAUTION, or WALK for each item. Any single WALK = stop and assess. 3+ CAUTION in either track = treat as WALK until explained.

Go 0
Caution 0
Walk 0
25 unanswered
Deal Info Complete before scoring
A
Business Risk
Financial, operational, and structural signals in the business itself
0
Go
0
Caution
0
Walk
B
Seller Behavior
Behavioral signals from the seller that indicate problems above or below the surface
0
Go
0
Caution
0
Walk
Overall Crash Test Verdict
Check one and explain below
Verdict
Go
No material flags in either track. Proceed to C2 — Convergence. Write the LOI with confidence.
Verdict
Caution
Flags present but potentially explainable. Do not write the LOI until each caution has a specific diligence plan.
Verdict
Walk
Material unresolved red flags. Do not write the LOI. Exit the deal or resolve the red flag completely before proceeding.
What happens after the crash test
Go
Proceed to C2 — Convergence. Get written alignment on all four dimensions (deal points, risk, timing, transition) in the LOI before the purchase agreement process begins. Engage legal counsel for LOI drafting.
Caution
Build a written diligence plan for each flagged item before drafting the LOI. Share flagged items with legal counsel so structural protections can be built in. Do not let caution items become surprises in the purchase agreement.
Walk
Exit the deal or require the red flag to be fully resolved and independently verified before any further investment of time, money, or relationship capital. Document your decision and the specific flags that drove it.
Buyers Black Book · @lawyer4smbs