Category: Industry Updates

The SMP Capital Partners team believes that every business owner should always know and understand their current market range of value.  Armed with that data business owners can maximize efficiencies and profitability, plan for future needs, create stronger and more durable infrastructures, while constantly maintaining a state of readiness for when it is time to…

From the buyer perspective, Seller’s Discretionary Earnings (SDE) has value when it accurately and historically translates into reliable repayment capacity. Lenders incorporate conservative assumptions to determine if the borrower’s potential acquisition can support debt service after normalizing owner-specific expenses and add backs, accounting for any cost to replace management, and incorporating ongoing business operating capital. …

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…

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…

Whether a business owner is ready or not, an eventual ownership transition is inevitable and the transactional process; more specifically the core diligence process, is a complicated, thorough, and detailed analysis. Complex diligence and analytical analyses are common in middle market transactions but have become standard practice in privately held small and lower middle markets. …

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…

“Business Value” is defined as the sum of all operating assets necessary to derive the company revenue including fixed assets and all intangible assets related to the production of income and cash flow streams. Knowing your business range of value is a vital component of success that can make your operation more efficient and more…

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…

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…

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…