Author: Josh Stamey
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A Business Owner’s Guide to Earnouts, Holdbacks, and Deal Structure
How earnouts, holdbacks, and deal structure affect business sale proceeds, risk allocation, and negotiations in an M&A transaction When business owners think about selling a company the most important metric is purchase price. Period. The purchase price is an important component and is the main determinant for most sellers. It is one of many variables…
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Why Two Similar Businesses Can Have Very Different Valuations
To the untrained eye, two businesses in the same industry will appear nearly identical. They may have similar revenue, org charts, and service offerings, but one concern will command a much higher valuation multiple. Why? Valuation is not singularly measured by revenue size or bottom-line earnings, but is driven by an array of nuanced variables. There are…
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What Happens After You Sign a Letter of Intent (LOI)?
Congratulations for building a salable business. Not everyone does that. A signed LOI is one of dozens of steps required to close a deal, all of which require careful negotiation and an experienced understanding of transactional mechanics and nuance. To stay in control, it is critical for business owners to set realistic expectations, understand procedure,…
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EBITDA Multiples by Industry: 2026 Valuation Benchmarks
EBITDA- It is easy to calculate and yet can be a mystery, wrapped in a riddle, inside an enigma. It is one of those acronyms that everyone pretends to understand but rarely has a solid handle on. Seems complex and complicated, but EBITDA calculations can be as difficult as they are made to be, and…
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SBA Loans for Business Acquisitions: What Buyers Need to Know
SBA 7(a) loans are the most common and advantageous for buyers in small market owner/operator and some lower middle market business acquisitions. These loans offer minimal up-front investment and longest payback term possible. SBA loans generally include purchase price consideration and working capital for equipment purchases, growth initiatives, and closing costs They are provided to…
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How Long Does It Take to Sell a Business?
A successful business ownership transition is a sign of a healthy, viable, sought after, and growing operation. So how long does the process take and how do you prepare? Every sale is different. Timeline depends on a myriad of variables that include deal structure complexity, due diligence information flow, financing contingencies, and legal negotiations. A…
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Top 10 FAQ’s We Get From Sellers at SMP Capital Partners
Value Advisory Team Preparation and Planning Transaction Close and Transition The SMP Capital Partners team believes every business owner should know their business value. Initially we provide a complementary valuation that outlines your current range of value based on a careful analysis of your financial data, recent & thoroughly researched comparable sales, and commonly held…
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What Makes a Business a Good Buy? Red Flags and Green Lights
Business acquisition is a powerful mechanism to build long-term wealth, but not all opportunities are created equal. Some acquisition targets present clear upside and long term growth potential, while others carry latent risk that can undermine the due diligence process and prevent the transaction from closing.Qualified buyer candidates evaluate an array of business characteristics throughout…
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What to Expect During Due Diligence
Well-funded buyers lead serious groups who pay top dollar for valuable holdings. Valuation is key, but the intangibles matter and they are examined in procedural detail during the due diligence component of the transactional process. You and your team built the workforce, management team, clients/customers, and grew the geographic footprint. It is built for the…
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Seller’s Remorse: How to Avoid Regret After Selling Your Business
Selling your business is a life altering transition that should follow a carefully managed process to minimize stressors and maximize benefit. It sometimes requires an extraordinary shift in perception. We have worked with hundreds of entrepreneurs through a business sale and transition into retirement or a new business venture. For most, after years of grinding…