November 9, 2023

Take Five #072: Small business valuation guide, and more

Take Five #072: Small business valuation guide, and more

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Take Five #072: Small business valuation guide, and more

1. Dissection of a canceled Alaskan tour company purchase

My general philosophy with business acquisition deals is that they WANT to die.

They are trains looking to jump the tracks. As the dealmaker, your job is to corral that train onto the tracks in any way possible. You may have heard the phrase “time kills deals” before — but it’s not that deals tend to die out over time, it’s that they are actively TRYING to die at any moment. If you wait too long, eventually they’ll outfox you and succeed.

This is a good example of a deal just figuring out a way to die that I didn’t foresee. This is a longer read, hence the weekend post — hope you enjoy it.

Read the Big Deal Small Business post here.

2. Deal analysis through a lender’s lens

3. Small business valuation guide with terms, metrics, and process breakdown

Thanks, @robbielaney!

4. Everything you need to know about self-funded SBA acquisitions

In today’s issue, expect to learn about the self-funded acquisition model from both the entrepreneur and investor perspective:

❓ What’s a self-funded SBA acquisition?
🧱 80/10/10 deal structure
🆙 Self-funded step up pricing/valuation methodology
📖 Key terms (the step-up multiple, liquidation preference, preferred return, CEO salary)

Read The SMB Scoop’s full article here.

5. 💡 Dollars Per Lead KPI for sales and lead allocation incentives

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