The Red Flag Playbook: Protect Yourself Before You Buy
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S1 E10

The Red Flag Playbook: Protect Yourself Before You Buy

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Episode Summary:
In this critical episode of the Built to Sell | Built to Buy podcast, business coach Sam Penny dives deep into one of the most overlooked (yet most expensive) parts of buying a business: risk. Not revenue. Not growth potential. Risk — and how to spot it, quantify it, and price it into your offer.
Whether you're a first-time buyer or a seasoned investor, this session will change how you think about due diligence. Sam breaks down the 3 categories of risk every acquirer must assess — operational, financial, and transfer risk — and reveals the tactics smart buyers use to protect themselves and avoid overpaying.
Learn how to go beyond glossy pitch decks and charming sellers, and start stress-testing the business like a pro. You’ll walk away with real frameworks, tools, and a case study that shows exactly how to reduce risk — and price it into the deal.
🔍 What You'll Learn:
  • Why most buyers overpay by ignoring risk
  • The 3 core risk categories and how to spot red flags
  • How to price risk into your offer and use it to negotiate better terms
  • A real-world deal that looked great on paper… until it didn’t
  • The tools elite investors use: checklists, red flag sheets, scorecards, and more
📚 Resources Mentioned:
  • Free Due Diligence Checklist
  • Risk Scorecard
  • Red Flag Tracker
  • Business Readiness Report
     👉 Available at sampenny.com
🧠 Quote of the Episode:
“The price is just a number — until you attach terms to it. Risk isn’t something to fear; it’s something to leverage.”
🎯 Call to Action:
💼 Buying a business? Book a free 30-minute strategy call to gut-check your deal before you sign:
👉 sampenny.com/strategy

Episode Video

Creators and Guests

Sam Penny
Host
Sam Penny
Sam Penny is an entrepreneur, business coach, and adventurer who’s built and sold multi-million-dollar companies — and taken on challenges most people wouldn’t dream of, from swimming the English Channel in winter to tackling an Ice Mile. Known as The Impossible Guy, Sam works with business owners to prepare for their biggest payday and with investors to buy smarter, more profitable businesses. On Built to Sell | Built to Buy, he brings a unique mix of hard-earned business wisdom, real deal experience, and a knack for asking the questions others won’t.