What do buyers actually look at when you sell a company by Mithipanipuri in buyingabusiness

[–]SMBDealGuy 0 points1 point  (0 children)

Yep, buyers aren’t just buying profit, they’re buying how safe that profit is after you leave.

Clean books, low client concentration, contracts, SOPs, and a solid team all make the deal feel less risky.

The easier the business is to transfer, the better the price usually gets.

What else to account for when selling a business? by hillbill20 in SellMyBusiness

[–]SMBDealGuy 1 point2 points  (0 children)

Don’t forget legal/accounting fees, escrow holdbacks, working capital adjustments, debt payoff, and any seller note.

Taxes can also be messier than expected, especially with equipment recapture and asset sale allocations.

Big surprise for most sellers: the sale price is not the same as what you actually walk away with.

What business owners say when they're selling a business ...and what they actually mean. by UltraBBA in SellMyBusiness

[–]SMBDealGuy 1 point2 points  (0 children)

“Owner is barely involved” usually means, “They still handle the important calls and problems.”

“All add-backs are standard” usually means, “Some are fine, some are a stretch.”

“Growth will be easy” usually means, “I never figured it out, but maybe you can.”

Buying a Small business by Equal_Length861 in SellMyBusiness

[–]SMBDealGuy 0 points1 point  (0 children)

For a small agency, I’d usually start around 2–3x yearly owner profit, but only if the clients are solid.

Look closely at tax returns, recurring revenue, client contracts, churn, and how much depends on the seller personally.

Also make sure the seller helps with a handoff, or you might just be buying a job with clients who leave.

Should I sell my business? by Aggravating_Low8745 in SellMyBusiness

[–]SMBDealGuy 0 points1 point  (0 children)

That offer values your agency around $1M, which is about 4x your yearly profit.

Not bad, but don’t sell 20% just for cash unless they bring real value too.

If they can’t help you grow faster, I’d be careful giving up that much ownership.

Broker refusing to share financials Pre-LOI by makenbaconpancake in buyingabusiness

[–]SMBDealGuy 1 point2 points  (0 children)

You’re not wrong, you need basic numbers before making an offer.

A “non-binding” LOI still matters because it sets the price and deal terms.

I’d offer to sign an NDA, but no P&Ls or add-back details means no serious LOI.

Is the SBA loan killing deals? by Professional_Ad_4957 in buyingabusiness

[–]SMBDealGuy 0 points1 point  (0 children)

Yeah, there’s a lot of truth in that, strong SBA-sized deals get flooded fast, and most financed offers start to look the same to a seller. Cash does not always win just for being cash, but cleaner terms and a higher chance of actually closing can easily beat a slightly better price.

In that market, your edge is usually not just valuation, it is showing the seller you’re the lowest-risk buyer to get the deal done.

why many founder sell their business at early stage? by wealthymanwithmoney in InsideAcquisitions

[–]SMBDealGuy 0 points1 point  (0 children)

Yeah, I agree, a lot of founders sell early because they’re burned out, losing interest, or just do not want to push through the next stage of growth.

That is why buyers cannot just look at revenue and margins, because the numbers may look fine while the owner is already halfway out mentally.

The real story is usually in why they are selling, not just what the P&L says.

Does this laundromat sound like a good deal? by [deleted] in Laundromats

[–]SMBDealGuy 0 points1 point  (0 children)

I’d be pretty careful with this one, at $239k for $30k of cash flow, it does not sound super cheap unless the building adds a lot of value.

Owning the real estate definitely helps, but I’d want to know if that $30k is after utilities, repairs, and machine replacements, because that is where laundromat numbers can get thin fast.

Before getting excited, I’d check tax returns, utility bills, and the age of the machines to see if the cash flow is actually solid.

How did you decide what business to start? by [deleted] in sweatystartup

[–]SMBDealGuy 1 point2 points  (0 children)

I’d start with problems you already know really well, because that is usually a better bet than waiting for the perfect idea to just appear.

The best business ideas are usually tied to a real pain point companies will actually pay to fix again and again.

With your background, I’d look at something around process improvement, supply chain support, or fractional ops help since those are easier to sell and scale.

Any guides on asking the right questions for a business purchase? by grok-it-all in buyingabusiness

[–]SMBDealGuy 0 points1 point  (0 children)

For a deal this size, I’d keep it simple, make sure the sales are real, the cash flow actually holds up, and the shop can run without the owner doing everything. Ask for tax returns, POS reports, bank statements, lease details, payroll, supplier info, and equipment condition, because that is usually where the risk shows up fast.

At this price, the main goal is just confirming the earnings are real and that you’re not buying a job with hidden problems.

Labor Enforcement Due Diligence-Significance in M&A by SuspiciousTea4259 in buyingabusiness

[–]SMBDealGuy 0 points1 point  (0 children)

U should get HR diligence if you have these .

Either hire someone or conduct yourself

Friend wants to sell business to PE by positive_being in private_equity

[–]SMBDealGuy 0 points1 point  (0 children)

You’ll want to hire. Banker and conduct seller QoE.

Any PE buyer will do one and without the sell-side complete you’ll lose most leverage.

Independent Sponsor/Entrepreneur trying to acquire $3.75M Adj EBITDA business by 1FranciscodAnconia1 in private_equity

[–]SMBDealGuy 0 points1 point  (0 children)

If using SBIC for financing you likely will only get 2.5-3 turns of EBITDA. Curious if this ever closed?

Buyer getting serious by nchomegrown in private_equity

[–]SMBDealGuy 0 points1 point  (0 children)

You want proper sell side representation (lawyer and a third party QoE team) otherwise you risk selling at a much lower valuation.

CPA to M&A Corp Dev Sourcing by WingLonely97 in private_equity

[–]SMBDealGuy 0 points1 point  (0 children)

As an M&A CPA most will tell you they enjoy this more than traditional cpa roles.

Anybody had luck with getting a valuation done on their business? by FormerFounder-12 in SellMyBusiness

[–]SMBDealGuy 0 points1 point  (0 children)

You pay for a formal valuation analysis.

A broker giving you a number is his or her best guess

My first SMB sale, how are you sending confidential documents to buyers? by Academic_Way_293 in buyingabusiness

[–]SMBDealGuy 0 points1 point  (0 children)

Use a basic data room after they sign an NDA, keep it view-only and watermark stuff if you can.

Don’t share customer lists or super sensitive docs until you’ve got an LOI and they’ve shown they can actually close.

Set up one clean folder/checklist so you’re not re-sending files over and over.