The Business Buyout Model Archives - The Small Business Buyer

Deal Criteria – The Optimum Range of EBITDA

by Roscoe | Jan 11, 2016 | The Business Buyout Model | 0 |

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 day. However I always come back to the same range. There are times when I go sky high end times when I feel like buying this a store down the street. But we’ll have to come back to reality at some point.

Business Plans and Executive Summaries for Leveraged Buyouts

by Roscoe | Oct 23, 2015 | The Business Buyout Model | 0 |

The summary will have one or two paragraphs about the business and some summary financial information, while the CM will be structured as a typical business plan with some modifications to reflect the sale of the business. The CM can run 50 to 100 pages with complete financial information.

DCF vs SDCF vs SDE vs OB vs EBITDA vs Adjusted EBITDA vs EBIT vs NOI

by Roscoe | Feb 28, 2015 | How To Do A Business Valuation, The Business Buyout Model | 0 |

Let’s say we want to examine earnings of a company in a pitifully simple way. Here is the important question. Do we want to examine the earnings before or after we pay somebody to run the company? The difference is very significant when valuing the company.

Return on Investment – Don’t Bother With It

by Roscoe | Mar 3, 2014 | The Business Buyout Model | 0 |

ROI = return on investment. It’s the very first thing you learn as an MBA. It is also a widely used yet blatantly overrated measure of performance for any investment in a company. In our case ROI has been used over the years to describe the desired percent return on an investment in a leveraged buyout. For example most private equity firms seek to achieve an ROI of greater than 33% per annum on any common equity dollar invested in their portfolio holdings. However, ROI can be used to analyze any investment.

Buyout Techniques Are Not New

by Roscoe | Jan 26, 2014 | The Business Buyout Model | 0 |

Royal Little was the founder of Textron and of course Textron was a company that built itself through acquisitions. He also founded a small buyout company that did structured deals with many layers of debt and equity (ie. an LBO). The This was in the 1960’s. Read it and you will realize who the father of leveraged buyouts might be.

LBO’s and Distressed Companies

by Roscoe | Oct 19, 2010 | Distressed Company Acquisitions, The Business Buyout Model | 0 |

The name of this blog, Small Business Buyer, is there for a reason. We believe that the LBO market is vast for buying small businesses. It can be done in any economic climate, and sized wallet and by anybody. But there is a right-sized business. We look for businesses of over $500,000 in cash flow and $5.0 Million revenues.

Buy a Construction Company

by Roscoe | Jul 21, 2010 | How To Get Started In Small Business Acquisitions, Small Business Buyouts, The Business Buyout Model | 0 |

OK let’s review what I preach. I preach buying companies that are bigger than mom and pop hot dog stands. Bigger than storefronts. Bigger than clothing stores. Bigger than your garden variety True Value hardware store....

Small Market Leveraged Buyouts

by Roscoe | Oct 27, 2008 | The Business Buyout Model, What Is A Leveraged Buyout | 0 |

Today, LBO’s have nearly come and gone. This is good for the small guy in many ways. For one thing financial institutions now have years of experience in financing LBO’s and do not mind financing these deals at all size levels. That doesn’t mean that anything goes

The LBO Model Applied

by Roscoe | Jun 30, 2008 | The Business Buyout Model, What Is A Leveraged Buyout | 0 |

The LBO model can be applied to most any type of deal small or big. Why would we want to do this? How can the purchase of a main street store be compared to the purchase of a aircraft parts manufacturer? How can we use the same...

Category: The Business Buyout Model

Deal Criteria – The Optimum Range of EBITDA

Business Plans and Executive Summaries for Leveraged Buyouts

DCF vs SDCF vs SDE vs OB vs EBITDA vs Adjusted EBITDA vs EBIT vs NOI

Return on Investment – Don’t Bother With It

Buyout Techniques Are Not New

Top 100 Finance Questions

LBO’s and Distressed Companies

Buy a Construction Company

Small Market Leveraged Buyouts

The LBO Model Applied

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