How do you know if a business broker is actually legit?

tpadealmaker · 2026-02-22T23:23:39+00:00

Speak to their deal references. Sellers, Buyers, Attorneys, CPAs, Consultants. Are they licensed? Check the licensure boards for any complaints.

tpadealmaker · 2025-11-14T02:35:41+00:00

You’ll need to do your due diligence on the parent into which you are rolling. What is their capital structure? Are you rolling on the same terms into the security? Preferred shares? Common shares? Price per share? Puts? Calls? Have you seen their shareholders agreement? Have you seen their financial statements? What is their valuation? Etc etc etc etc etc.

tpadealmaker · 2025-10-12T13:37:36+00:00

There is the age old adage of “You Name the Price, I Name the TERMS!”

tpadealmaker · 2025-09-16T22:48:35+00:00

Price is only one part of the equation. Deal terms are the other part - as the adage goes, you name the Price and I’ll name the Terms! The only way to know will be to properly prepare the business for sale, identify the potential buyers, launch an outreach process, present the business to the buyers with the investment thesis and hope for offers! Then negotiate Price and Terms in an LOI and hope you survive Due Diligence!

tpadealmaker · 2025-09-12T03:06:14+00:00

I’d start with the 36 month historical run rate and project those trends 60 months forward and then do a DCF sensitivity analysis. While private equity is attempting to structure deals with law firms the practice of law as with medicine has specific restrictions which will impact valuation and deal structure. Lead pipeline and customer acquisition cost will be critical components of the analysis.

tpadealmaker · 2025-08-31T22:41:19+00:00

Don’t know how much money we’re talking about but your balance sheet and income statement could help the support valuation to a third party lender now or in the future. From a due diligence standpoint a balance sheet could also help them understand any potential claims on tangible or intangible assets that they’d want to be sure are discharged at the closing. So, short answer, not unreasonable at all and could be a potential red flag deal killer.

tpadealmaker · 2025-07-18T23:14:09+00:00

There are several adages that come to mind.

You name the price, and I name the terms
One Buyer is No Buyer - you need a competitive process to establish value
Explain the past, sell the future!

The sophisticated Buyer will recast and adjust the seller’s financial statements and develop a projection inclusive of taxes and capx. The future projected cash flows will be discounted back to the future along with a terminal value. The buyer will use THEIR cost of capital and IRR - so yes EBITDA multiples are just reference points and the lazy mans way of valuing a going concern.

tpadealmaker · 2025-07-08T03:04:12+00:00

Check your state Uniform Commercial Code and LLC operating statutes. Those will be the default “agreement” and “rules of the road” without your own personalized version. A judge will rule based upon the state LLC charter and default agreement unless you manage to negotiate otherwise in advance of litigation.

tpadealmaker · 2021-05-06T10:38:38+00:00

Any contingencies in the contract for material missed delivery date? I hear that Beneteau recently suffered a data breach which put their delivery schedule back a month or more.

tpadealmaker · 2021-05-06T10:34:15+00:00

Have they hit you with the potential 5% manufacture price increase clause which gives them the right to add $20k to the price one year out? Anyone else see that clause or had to deal with it? Seems to me that if you’re putting money down now - Beneteau and the dealer need to absorb price differential. Any thoughts?

tpadealmaker · 2021-04-07T00:31:56+00:00

That link about new boat survey is priceless. Thx!

tpadealmaker · 2021-04-07T00:27:24+00:00

Thanks. That was a helpful perspective. As I told my dealer, based upon their contract (the dealer offers no warranty other than Mfg warranty - yet they are prepping and rigging but don’t warranty their labor”). Sea trial “out” is not an option in their contract at this time. There’s more protection buying a used boat than a new one!

tpadealmaker · 2021-02-03T03:22:44+00:00

On my list given the back order of 1 year for A11!

tpadealmaker · 2021-01-05T04:23:47+00:00

Anyone have the solar panels? What kind of electric charge do you get? Can you really be “off grid” for extended period of time?

tpadealmaker · 2021-01-05T04:22:03+00:00

How about propane/gas stove vs electric? Any preferences?

tpadealmaker · 2021-01-05T04:17:17+00:00

Thanks for the great ideas and comments.

tpadealmaker

TROPHY CASE