# 047: Financial, legal and HR traps of buying and selling small businesses, Chris Ray & Chariss Tatman of C2 Group

- Show: [Product Startup](https://hardwarepodcasts.com/podcast/product-startup)
- Published: 2017-04-04
- Length: 46m
- Page: https://hardwarepodcasts.com/podcast/product-startup/2017-04-04-047-financial-legal-and-hr-traps-of-buying-and-selling-small-businesses-chris-ra
- Listen: https://theproductstartup.com/christopher-ray-chariss-tatman-c2-group/

## Summary

Chris Ray and Chariss Tatman of C2 Group discuss the financial, legal, and HR traps small business owners face when seeking outside investment or preparing for a sale. They highlight critical accounting errors, such as misclassifying recurring expenses as one-off items and failing to account for the shelf life of perishable inventory, which can drastically reduce valuation. The guests also emphasize the importance of rigorous HR documentation to mitigate liability and the necessity of finding investors who offer strategic value beyond capital, rather than just writing a check.

## Chapters

- [0:00](https://hardwarepodcasts.com/podcast/product-startup/2017-04-04-047-financial-legal-and-hr-traps-of-buying-and-selling-small-businesses-chris-ra#t=0) Introduction and Podcast Housekeeping
- [3:04](https://hardwarepodcasts.com/podcast/product-startup/2017-04-04-047-financial-legal-and-hr-traps-of-buying-and-selling-small-businesses-chris-ra#t=184) Chris Ray and Chariss Tatman on C2 Group's Background
- [6:18](https://hardwarepodcasts.com/podcast/product-startup/2017-04-04-047-financial-legal-and-hr-traps-of-buying-and-selling-small-businesses-chris-ra#t=378) Reasons for Seeking Investment and Common Mistakes
- [13:13](https://hardwarepodcasts.com/podcast/product-startup/2017-04-04-047-financial-legal-and-hr-traps-of-buying-and-selling-small-businesses-chris-ra#t=793) Accounting Traps: Recurring Expenses and Perishable Inventory
- [16:43](https://hardwarepodcasts.com/podcast/product-startup/2017-04-04-047-financial-legal-and-hr-traps-of-buying-and-selling-small-businesses-chris-ra#t=1003) Investor Due Diligence on HR and Turnover Rates
- [22:43](https://hardwarepodcasts.com/podcast/product-startup/2017-04-04-047-financial-legal-and-hr-traps-of-buying-and-selling-small-businesses-chris-ra#t=1363) Finding and Vetting Investors Through Networking
- [26:15](https://hardwarepodcasts.com/podcast/product-startup/2017-04-04-047-financial-legal-and-hr-traps-of-buying-and-selling-small-businesses-chris-ra#t=1575) HR Documentation and Legal Liability in Hiring
- [28:20](https://hardwarepodcasts.com/podcast/product-startup/2017-04-04-047-financial-legal-and-hr-traps-of-buying-and-selling-small-businesses-chris-ra#t=1700) Building the Pitch: EBITDA, Projections, and Team Credentials
- [36:26](https://hardwarepodcasts.com/podcast/product-startup/2017-04-04-047-financial-legal-and-hr-traps-of-buying-and-selling-small-businesses-chris-ra#t=2186) C2 Group Services and Preparing for Capital
- [40:25](https://hardwarepodcasts.com/podcast/product-startup/2017-04-04-047-financial-legal-and-hr-traps-of-buying-and-selling-small-businesses-chris-ra#t=2425) Final Advice: Business Models and Legal Setup

## Topics

- [Fundraising & investors](https://hardwarepodcasts.com/topic/fundraising)
- [Pricing, margins & unit economics](https://hardwarepodcasts.com/topic/pricing-and-unit-economics)
- [Hiring & workforce](https://hardwarepodcasts.com/topic/hiring-and-workforce)
- [Manufacturing partners & offshoring](https://hardwarepodcasts.com/topic/manufacturing-partners)

## Most relevant to

early-stage companies

## Mentioned

- C2 Group (company)
- Mako Design + Invent (company)
- C2Groupllc.com (other)

## Related episodes from other shows

- [S6E45 Jeremy Jarrett | Legal Advice & Strategy for Starting An Engineering Business](https://hardwarepodcasts.com/podcast/being-an-engineer/2025-11-07-s6e45-jeremy-jarrett-legal-advice-strategy-for-starting-an-engineering-business) (Being an Engineer)
- [Demystifying the Buying and Selling of a Manufacturing Business w/ Mike Payne](https://hardwarepodcasts.com/podcast/the-manufacturing-executive/2025-02-25-demystifying-the-buying-and-selling-of-a-manufacturing-business-w-mike-payne) (The Manufacturing Executive)
- [#56 First Hire Series: Finance & Accounting with William Finkelstein](https://hardwarepodcasts.com/podcast/the-startup-cpg-podcast/2022-08-09-56-first-hire-series-finance-accounting-with-william-finkelstein) (The Startup CPG Podcast)
- [150: Sad Country Song](https://hardwarepodcasts.com/podcast/embedded-fm/2016-05-04-150-sad-country-song) (Embedded.fm)
- [218: Why Buying and Selling a Business Is a "War over the Numbers" Featuring Clint Bundy of Bundy Group](https://hardwarepodcasts.com/podcast/manufacturing-happy-hour/2025-01-07-218-why-buying-and-selling-a-business-is-a-war-over-the-numbers-featuring-clint) (Manufacturing Happy Hour)

## Citing this page

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