Business Consulting – Selecting a Business Broker
When you begin your exit planning, a business broker becomes one of your key advisors. Since this is likely your first and only time selling a business, how do you know who to select? Here are some essential considerations that will guide your decision. 1. Do They Know You and Your Business? The right […]
Business Consulting: Selling a Business Without a Business Broker
It’s human nature to want to save money — and certainly an Iowa norm! Many business owners field direct buyer inquiries and are tempted to navigate the sale process without professional representation. When it works, that’s a great deal! But after two decades in business acquisition financing, I’ve experienced that it rarely does. Here’s why: […]
Business Valuation: Understanding Cash Flow Addbacks
The Critical Role of Cash Flow Analysis A fundamental responsibility of business brokers is accurately determining and presenting business cash flow to potential buyers. This financial metric serves as the cornerstone of business valuation and is typically expressed through Seller’s Discretionary Earnings (SDE), EBITDA, or Adjusted EBITDA. For small business transactions, SDE represents the most […]
When Is the Right Time to Sell Your Business?
One of the most common questions I hear from owners is, “When should I sell my business?” The answer isn’t the same for everyone — but there are a few clear signs it might be time to start planning your exit. 1. Before You’re Worn Out and Tired Running a business is demanding. If you […]
Strategies for Selecting the Right SBA Lender for Your Business Acquisition Loan
When acquiring a business with an SBA loan, working with the right lender is crucial for a smooth transaction. Here’s how to identify and choose the best options: Start with SBA Preferred Lenders You’re absolutely right that SBA Preferred Lenders are the ideal starting point. These banks have demonstrated sufficient SBA lending volume and expertise […]
Key Factors for Business Buyers in M&A Transactions
Having worked on hundreds of mergers and acquisitions representing buyers, I’ve noticed several consistent patterns in their priorities. Most buyers require financing to close deals, and the banking partner’s experience plays a crucial role in transaction execution. The following expectations are nearly universal: 1. Cash Flow The most critical factor is a business that generates […]
After Decades of Building Your Business, What’s Next?
After Decades of Building Your Business, What’s Next? You’ve spent years — maybe even decades — building your company. You’ve poured your heart, long hours, and relentless energy into overcoming obstacles, celebrating wins, and creating something you’re proud of. But lately, you might be feeling a little less drive, a little less spark, and you’re […]
Small Business Sale Norms – The Asset Purchase Agreement
Blog – Asset Purchase Legal Structure When considering the sale or acquisition of a small business, the structure of the deal plays a critical role in defining its tax treatment, liability exposure, ease of execution, and post-closing dynamics. While larger, more complex transactions often involve stock sales or mergers, the overwhelming majority of small business […]
Preparing to Sell Your Business – Four Essential Steps
Blog – Preparing_to_Sell_Your_Business After participating in hundreds of business acquisitions and divestitures over my 25-year career, I’ve developed a comprehensive understanding of what separates successful exits from disappointing ones. The difference often lies in methodical preparation rather than luck or market conditions. If you’re thinking about selling in the next few years, these strategies can […]
Other Key Factors in Valuing a Small Business for Sale
Understanding the Elements That Drive Business Valuation As the final part in this series of valuing a small business for sale, it is important to recognize additional factors that significantly influence buyer demand and final valuation. 1. Business Longevity and Track Record Buyers tend to favor well-established businesses with a proven track record. A longer […]
