Category: Industry Updates
-
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…
-
Business Valuation Methods Explained: Income, Market, and Asset Approaches
“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…
-
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…
-
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…
-
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…
-
7 Signs You Are Ready to Sell Your Business
Getting married, having kids, buying a house, moving, and getting those kids successfully out into the world are a few of the most significant and sometimes stressful adventures you will ever manage. Deciding to sell your business is right up there. Sellers always have an emotional experience when transitioning. It is a lot of change.…
-
Mergers and Acquisitions as a Strategic Pathway to Growth Capital
For many business owners, the term “business acquisition” in the Mergers & Acquisitions space still conjures visions of a full exit — handing over the keys and stepping aside. But in the lower middle market, that narrative has shifted significantly over the last several economic cycles. Increasingly, founders and second-generation operators are choosing to stay…
-
What Is Your Business Really Worth: How to Accurately Value Your Business and Maximize Its Return
Most business owners know the value of their home, but surprisingly few know whattheir business is truly worth — even though it is often their most valuable asset.Understanding your company’s current market range of value is not just aboutpreparing for a future sale. It is about strengthening operations, improvingprofitability, and planning confidently for the road…
-
Buying a Business: Step-by-Step Guide for Entrepreneurs
Your Guide to Buying an Existing Business Buying an existing business, instead of constructing a start up from scratch, buys you immediate cash flow, customers with consistent revenue, and a skilled and seasoned organizational chart. It is a big decision and must include exhaustive research, long term planning, and experienced support. The SMP Capital buyers…
-
10 Key Questions to Ask Before Hiring a Business Broker
Selling your business is more than a transaction — it is the culmination of years of hard work, sweat, and dedication. Whether you are planning to retire, start a new chapter, or simply cash in on your efforts, the right business broker can help you get the value you have earned and ensure a smooth…