Author: k.doyle@murphybusiness.com

Kevin Doyle, a Cedar Rapids native, specializes in consulting and selling small to midsized businesses across Iowa. With 25 years of expertise in business transactions, he offers sellers and buyers a unique brokerage advisory experience. Having participated in hundreds of business sale transactions, he brings a wealth of knowledge to the table. As an SBA lender with Wells Fargo and Live Oak Bank, Kevin has focused on business acquisition lending. This background provides him with valuable insight into the entire sales process, from identifying potential pitfalls to understanding the transaction from both the buyer's and lender's perspectives. His expertise spans business valuation, buyer qualification and selection, overcoming transaction hurdles, and ensuring deals reach a successful close. He understands both the financial and emotional significance of these transactions and takes pride in guiding clients through the process. Kevin earned his Finance degree from the University of Iowa Tippie College of Business. Outside of work, he enjoys spending time with his wife of 30 years and their two grown children (all Tippie graduates!), playing pickleball, or vacationing in Cabo San Lucas. He is excited to leverage his specialized skills to benefit Iowa business owners!

Small Business Sale Norms – The Asset Purchase Agreement

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 transactions are executed as asset purchases.

Preparing to Sell Your Business – Four Essential Steps

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 dramatically improve your final outcome. Below, I outline four evidence-based strategies that consistently deliver superior outcomes for business sellers.

Other Key Factors in Valuing a Small Business for Sale

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.

Seller Discretionary Earnings and Business Sales Price

Seller Discretionary Earnings (SDE) play a critical role in determining the fair market value of a small business. As a fundamental financial metric, SDE provides valuable insights into a company’s financial health and attractiveness to potential buyers. Additionally, the predictability of cash flow significantly influences valuation.

How Are Small Businesses Valued for Sale?

When assessing the value of a small business, analyzing historical cash flow is a fundamental approach. This method provides buyers with insight into the company’s annual revenue generation and often justifies a premium purchase price for businesses with a proven track record of success.