Earn-Outs: When They Work and When to Avoid Them
Earn-outs can be a useful tool in M&A negotiationsâbut theyâre also one of the most misunderstood and misused. Done right, an earn-out aligns incentives and bridges valuation gaps. Done poorly, it creates tension, distracts from growth, and sparks legal disputes. So how do you know when an earn-out is the right moveâand when itâs better […]
What to Expect in the First 100 Days Post-Acquisition
You signed the papers. The wire hit. You officially own the business. Now what? The first 100 days after closing are some of the most critical in the entire acquisition journey. This is when reality meets strategy, when your integration plan gets tested, and when your leadership starts to shape the future of the company. […]
Seller Financing: Risks, Rewards, and Structuring Tips
In small business M&A, seller financing isnât just commonâitâs often essential. For buyers, it reduces upfront capital requirements and aligns incentives post-close. For sellers, it can help bridge valuation gaps and accelerate a deal. But as with any powerful tool, seller financing comes with risks, and the structure matters more than most people realize. In […]
10 Common M&A Myths
If youâre buying your first business, thereâs a good chance youâve already run into conflicting advice, outdated assumptions, and well-meaning but misleading hot takes from internet forums or your broader network. The truth is, small business M&A doesnât work like buying real estate or investing in public stocks. Itâs messy, personal, and often more art […]
When to Walk Away From a Deal
If you’re deep into diligence and starting to second-guess things, you’re not alone. Every buyer eventually asks themselves: Is this just cold feet? Or is it time to walk away? In M&A, walking away can feel like failureâespecially if you’ve spent months building a relationship with the seller, racked up legal and diligence costs, or […]
The Buyer’s Guide to M&A Negotiations: Strategies, Structures, and Pitfalls to Avoid
For most acquisition entrepreneurs, negotiating a deal is both exciting and intimidating. It’s where strategy meets psychology â and where the success of your acquisition can be won or lost. M&A negotiations are about far more than just “price.” Deal structure, risk allocation, timelines, and post-close dynamics all get shaped at the negotiating table. And […]
Why the Bankâs Due Diligence Shouldn’t Replace Yours
If youâre financing your deal with an SBA loan or working with a lender to close a business acquisition, chances are youâve heard something along the lines of: âThe bank will do their own due diligence.â Thatâs true. But itâs also incomplete. Because hereâs the catch: a bankâs due diligence isnât designed to protect you. […]
What Happens After a Quality of Earnings Report?
For many first-time or early-stage acquirers, getting the Quality of Earnings (QoE) report feels like a big milestoneâand it is. But itâs also the beginning of the most important conversations in your deal process. If youâre holding a fresh QoE and wondering, âNow what?ââthis guide is for you. Letâs walk through what you should do […]
Broker vs. Private Sale: What to Expect (For Buyers and Sellers)
When you’re getting ready to buy or sell a small business, one of the first decisions youâll face is how to approach the deal: work with a broker or go the private route? Both options can work. But the process, the people involved, and the potential pitfalls vary significantly depending on the path you take. […]
How a Skilled Due Diligence Team Protects Your Bottom Line
When evaluating a potential acquisition, having a clear and accurate understanding of the business is crucial. Without the right expertise, itâs easy to overlook red flags, miscalculate risks, or even overpay for a business that isnât as strong as it appears. A solid due diligence team ensures you get the full picture, protecting you from […]
Understanding Add-Backs and How They Impact a Deal
When evaluating a business for acquisition, one of the most critical aspects of financial due diligence is understanding add-backs. These adjustments can make a business look more profitable than it actually is â or, in some cases, reveal hidden value. Either way, if you donât know how to analyze add-backs properly, you could end up […]
What to Look Out for Before Submitting an LOI
When evaluating a business acquisition, the period before submitting a Letter of Intent (LOI) is critical. This is your chance to conduct high-level due diligence, assess deal viability, and ensure you’re not about to buy a business held together by duct tape and wishful thinking. Buyers at all levels should approach this stage with a […]
Why Some Deals Fall Apart in Due Diligence and How to Keep Yours on Track
Mergers and acquisitions (M&A) are high-stakes ventures, with nearly half of all deals failing before closing. Research shows that up to 50% of M&A transactions donât make it to the finish line. The biggest stumbling block? Due diligence. This phase is where financial, legal, and operational realities come to light sometimes derailing deals entirely. But […]
3 Ways to Identify an Exceptional SMB Due Diligence Provider
When diving into the world of small and medium-sized business (SMB) acquisitions, one of the most crucial steps is selecting the right due diligence provider. Their insights and analysis can make or break a deal, and finding someone exceptional can greatly influence the outcome. So, how do you spot a truly outstanding due diligence provider […]
Two Secrets to Growing Your SMB: Delegation and Automation
Building or acquiring a business is a thrilling journey, especially in the first year. Yet, it often means sacrificing vacations and being deeply involved in daily operations. Entrepreneurs find themselves wearing many hats, handling everything from marketing to customer service, leaving little room for relaxation. This level of involvement, while necessary initially, can become unsustainable. […]
How to Balance Persistence and Adaptability in SMB Acquisitions
Acquiring a small or medium-sized business (SMB) is a significant challenge. From the initial search to the final deal, the journey can be full of challenges and setbacks. Based on experience working with numerous searchers, the key traits that distinguish successful searchers from those who eventually give up are their ability to persist and pivot […]
One Critical Component That Is Often Overlooked in SMB Deals
In small and medium-sized business (SMB) deals, it’s not uncommon to come across prospectuses and Confidential Information Memorandums (CIMs) that paint a vivid picture of a company’s potential. These documents are full of untapped opportunities, giving us an exciting look at what could happen if the right strategies are implemented. They speak of doubling revenue, […]
What To Do When Your SMB Deal Falls Apart Post-LOI
Anytime a deal falls apart well into the post-LOI (Letter of Intent) period, it’s tough for everyone involved. It’s not just about the lost opportunityâthere’s a lot of time, effort, and money that’s been invested by all parties to get to that stage. It sucks, and there’s no getting around that. Whether you’re a buyer, […]
