Navigating Business Acquisitions with High Customer Concentration

Navigating Business Acquisitions with High Customer Concentration

In business acquisitions, high customer concentration presents a unique set of challenges and risks. A recent discussion on the Searchfunder forum highlighted a case where an entrepreneur considered acquiring a business with substantial revenue concentration in just two clients. This situation provides an illustrative example of how potential buyers can approach similar scenarios, emphasizing creative…

The Real Value of Business Brokers

The Real Value of Business Brokers

In M&A, the role of business brokers is often seen through a narrow lens, predominantly focused on commission-driven motivations. However, a recent vibrant discussion on Searchfunder has illuminated a broader and more nuanced understanding of what brokers contribute to the M&A process. Drawing from diverse experiences shared by buyers, sellers, and M&A advisors, this article…

Navigating Licensing Challenges in Business Acquisitions

Navigating Licensing Challenges in Business Acquisitions

Acquiring a small business can present a myriad of challenges, especially when the business requires specific professional licenses to operate. One frequent issue is the seller being the only individual holding the necessary licenses, such as a Master Plumber or electrical license. This poses a significant hurdle for buyers who do not possess the required…

The Role of Business Brokers: Insights from M&A Professionals

The Role of Business Brokers: Insights from M&A Professionals

The role of business brokers in small business acquisitions often sparks debate among buyers, sellers, and M&A professionals. Drawing from a comprehensive discussion on Searchfunder, this article explores the multifaceted roles of brokers, shedding light on both the potential benefits and challenges from various stakeholder perspectives.   The Broker’s Value to Buyers and Sellers  …

Navigating Excess Cashflow Distribution in Self-Funded SBA Deals

Navigating Excess Cashflow Distribution in Self-Funded SBA Deals

When embarking on a small business acquisition using a self-funded SBA deal, understanding how to manage and allocate excess cash flow is critical. This not only ensures compliance with loan conditions but also balances investor returns with business sustainability. Below, we’ll explore a detailed framework for how cash flow can be managed post-acquisition, using a…