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…

Due Diligence Lessons from a First-Time Business Buyer
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Due Diligence Lessons from a First-Time Business Buyer

Business acquisitions can be both exhilarating and daunting. First-time buyers, in particular, face a steep learning curve, navigating through the complexities of due diligence to ensure they make a well-informed decision. In a recent discussion on Searchfunder, community member Ben Wann, shared a reflective piece on his experiences acquiring an accounting firm. His story highlights…

Early Red Flags When Dealing with Business Sellers

Early Red Flags When Dealing with Business Sellers

Navigating small business acquisitions demands acute awareness of potential pitfalls, particularly when evaluating the readiness and intentions of a potential seller. Drawing on a robust discussion from the Searchfunder forum, this comprehensive article explores the early warning signs that buyers should heed to avoid entering into risky deals. From psychological insights to legal ramifications, this…

Broker Outreach for Industry-Targeted Business Acquisitions

Broker Outreach for Industry-Targeted Business Acquisitions

In industry-targeted business acquisitions, especially in sectors like tech-enabled services, software, and professional services, finding the right brokers is both critical and challenging. This article, enriched with insights from a vibrant Searchfunder forum discussion, offers in-depth strategies for entrepreneurs seeking to navigate this complex landscape effectively. Understanding the Broker Landscape The initial step in any…

Mastering the Transition from First Call to LOI

Mastering the Transition from First Call to LOI

Navigating the journey from an initial call with a business owner to securing a Letter of Intent (LOI) can be a complex and nuanced process, especially for self-funded searchers who may not have the backing of an established fund or extensive experience in deal-making. This comprehensive guide, inspired by a rich discussion on Searchfunder, provides…

SBA Loan Pre-Approval in Business Acquisitions

SBA Loan Pre-Approval in Business Acquisitions

In the competitive landscape of small business acquisitions, prospective buyers constantly seek tools and strategies to distinguish themselves in the eyes of sellers. One such strategy involves obtaining a pre-LOI (Letter of Intent) SBA loan pre-approval, or more precisely, a pre-qualification letter. This document, often misunderstood as a guarantee of future funding, can play a…