The Family Business Seller’s Dilemma

It is true that baby boomers are becoming a bigger factor in selling businesses. Just as there were many post war Sellers in the nineties, there are now a plethora of older generation business owners that must exit sooner or later. They might be able to close the business but that is not a desirable option. For these older owners, selling to family members is the best way to pass ...

Deal Criteria – The Optimum Range of EBITDA

So I think I will do a few posts on deal criteria because people always ask me about it.  In this post I will talk about the range of earnings that a company should have for it to be on my radar.  I should point out that I always change this criteria depending on the day of the week, my mood, the stock market, and if I'm having a bad ...

The 6 Biggest Obstacles To Buying a Business – and How To Beat Them

In this post I'm going to go over the biggest obstacles to buying a business. Any business, big or small, not just bigger deals in sizable buyouts.  Now there are many reasons why buyers and entrepreneurs self destruct as they go through the business buying process. So I am going to cover the most important of those reasons. Not Mapping Strategy Out. The first and foremost of any of those ...

The Anatomy of An Old Leveraged Buyout Deal – A Case Study

Here is a short video description of what went down in 1988 when a huge deal was bought using a leveraged buyout. This was in the era of junk bonds, Drexel and Mike and they don't exist much anymore but their spirit lives on.  Why would I bother with an old mega-deal decades old? To show that the deals that are done today use the same principals as they did ...

The Small Business Buyout

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Investment Banking Myths

Investment Banking Myths and Small Business Buyers

One of the reasons I stuck with small business buying is that big business buying didn't make a lot of sense to me. First of all there is competition and the competition comes from big money players in private equity. So these guys are at the top of the food chain and ever since the 1990's they have grown in numbers like rabbits. So there is more institutional money available ...
Cash Flow Loans

Cash Flow Loans To Buy A Business

Questions On Cash Flow Business Loans: 1) Can I borrow a cash flow loan to buy a business? 2) What is a cash flow loan? 3) Who are the cash flow lenders? 4) How much cash flow do I need to get a cash flow loan? Does anyone really know what a cash flow loan is? When I work with students I teach how to procure loans on an asset ...