Learn 10 ways buyers can finance a small business acquisition, from cash and SBA loans to seller financing, investors and combination structures.
Lakeland
Lakeland
The Hidden Math of Pool Routes: 5 Surprising Insights Into Buying a Service Business
Generally, these businesses sell for approximately two times their annual cash flow, which often equates to roughly one year of total revenue.
Macro Economic Reality Check: Why Main Street Is Getting Squeezed and How Buyers and Sellers Must Adapt
SBA underwriters typically look at a company’s three-year historical performance. If a business shows a recent downward trend in revenue or shrinking margins:
Occupancy Is King: Why Buyers Pay More for Consistent Rental Performance
A company that can consistently fill calendars has already solved many of the operational challenges buyers would otherwise need to address after acquisition.
Why the Multiple That Prices Your Business Changes As You Grow
Once you have two to three years of clean, addback-supported earnings and revenue above roughly $150,000–$300,000, buyers and lenders will expect an SDE-based conversation, not a revenue-based one.