Community
Where buyers, sellers and advisors compare notes
Real deal questions get answered by people who have closed them. Sample threads below are illustrative.
- Deal StructureEllen R.4 replies
How much working capital should I ask to stay in the business?
I'm negotiating an LOI on a $3.1M revenue commercial services business. The seller assumes they keep all receivables and I fund working capital myself. My lender says that will strain the first quarter. How do buyers usu…
- ValuationDaniel K.3 replies
SDE vs EBITDA for a $2m service business?
My broker is presenting my business on SDE, but two buyers keep asking for EBITDA. Revenue is about $2M with one full-time manager and me working roughly 20 hours a week. Which number should I be marketing on?…
- First-time BuyersPriya S.3 replies
What makes a buyer look credible to a seller?
I keep getting slow responses from brokers on listings that fit my criteria. I have real capital and relevant operating experience. What actually gets a broker or seller to take a first-time buyer seriously?…
- SBA BuyersMarcus T.3 replies
How long does SBA 7(a) acquisition financing usually take?
Under LOI on a home services business. The seller wants to close in 45 days. My lender is talking about 60–90 days from full application. How do people manage the gap between seller expectations and lender reality?…
- First-time BuyersOwen L.2 replies
Should I contact the seller directly or through the broker?
I figured out which business a blind listing refers to. Is there any downside to approaching the owner directly instead of going through the listing broker?…
- Deal StructureSara M.3 replies
What should be in an LOI?
First time writing a letter of intent. What has to be in it, and what is better left to the purchase agreement?…
- Due DiligenceGrant W.3 replies
How much customer concentration is too much?
Looking at a distribution business where the top customer is 31% of revenue and has been for eight years. Deal breaker or price adjustment?…
- Deal StructureHannah P.3 replies
Seller note vs earnout — when does each make sense?
Seller wants full price. I want protection against a revenue drop after transition. Do I push for an earnout or a larger seller note?…
- First-time BuyersAndre C.2 replies
Buying a business with a partner: key questions before the LOI
My co-buyer and I have complementary skills but no written agreement. What do we need to settle before we sign anything?…
- Due DiligenceRachel B.2 replies
How do I verify owner hours and owner dependence?
Every listing says the owner works 20 hours a week. How do I test that claim before I commit?…
- Brokers & AdvisorsLaura M.2 replies
What should a seller prepare before going to market?
Posting a checklist I use with owners 6–12 months ahead of a sale. Additions welcome.…
- Due DiligenceSimon G.2 replies
Is a quality of earnings report worth it under $2M?
Quotes are coming in at several thousand dollars for a business with under $700K of SDE. Standard practice or overkill at this size?…
- Brokers & AdvisorsTanya E.2 replies
How do brokers actually get paid?
I've been quoted a retainer plus a success fee, and separately a straight percentage. What's normal and what should I look for in the agreement?…
- Post-AcquisitionJordan F.2 replies
First 90 days after closing — what actually matters?
Closing on a 30-employee service business next month. What should I prioritize and what should I leave alone?…
- Search FundsNeha D.2 replies
Self-funded search: how much capital do I really need?
Targeting a $1M SDE business. Trying to size equity, closing costs and living expenses during the search itself.…
- Deal StructureCurtis N.2 replies
Asset sale vs stock sale — what changes for me?
Seller's accountant wants a stock sale. My attorney prefers an asset sale. High-level, what's actually at stake?…
- ValuationBianca H.2 replies
How do I value recurring revenue vs project revenue?
A services business has 60% contract revenue and 40% one-off project work. Do buyers really pay a different multiple for the two halves?…
- Due DiligenceMiguel A.2 replies
Landlord consent is holding up my deal
Two weeks from planned closing and the landlord hasn't approved assignment. What are my options?…
- Brokers & AdvisorsIvan R.2 replies
How do sellers protect confidentiality while marketing?
I can't have staff or customers finding out. How do brokers actually market a business without revealing who it is?…
- Industry BuyersTrent M.2 replies
Buying an HVAC business — what should I check first?
I run a plumbing company and want to add HVAC. What is different about diligence in HVAC compared to my own trade?…