Search Process

Buy Small Sell High
Jan 07, 2023
Share
Buy Small Sell High
Closing SBA Loans Sucks But It's Worth It
Thanks for reading Buy Small Sell High! Subscribe for free to receive new posts and our broker list containing the contact information of over 5,000 business brokers. The SBA 7a loan program is the backbone of self-funded searchers. Without it, the deals would require way more equity and lower the equity stake searchers get to keep. But boy do they make …
Read more
a year ago · Buy Small Sell High
Buy Small Sell High
Buying vs Starting a Business
For most aspiring business owners, the desire to own a business comes down to three motivations: being your own boss, building something / having an impact, and financial upside. Most of these benefits can be achieved without owning a business. A freelancer has similar or more flexibility than a business owner and charities have a tremendous positive imp…
Read more
a year ago · Buy Small Sell High
Buy Small Sell High
Understanding Search Funds as an Asset Class
Thanks for reading Buy Small Sell High! Subscribe for free to receive new posts and our broker list containing the contact information of over 5,000 business brokers. While the number of search funds has grown rapidly over the past 10 years, search funds as an asset class remain a niche appearance. When looking for investors, it is helpful to understand …
Read more
2 years ago · 3 likes · Buy Small Sell High
Buy Small Sell High
Searching Alone vs. Searching with a Partner
The quote in the title was the answer from one of my mentors when I asked for his advice on the solo-vs-partnered question and what ended up tipping the scales in favor of going the partnered-route for me. For most people the tradeoff seems pretty obvious. You give up roughly half of the upside (even though partnered searchers have historically…
Read more
2 years ago · 1 like · 2 comments · Buy Small Sell High
Buy Small Sell High
Recurring Revenue Is Overrated
Here’s the typical list of criteria for most search funds: recurring revenue, no customer concentration, >20% EBITDA margins and ideally >$1mm EBITDA. That’s pretty much what ours looked like as well. When I was still contemplating whether to search, I presented that list to small business veteran and he said good luck finding a unicorn…
Read more
2 years ago · 8 likes · Buy Small Sell High
Buy Small Sell High
How Much Should You Bid For Small Businesses?
Buying cheap has been the gospel for investors since the early days of Graham and Buffet. The SMB MBA references a study that found that purchase price was the best predictor for returns and 60% of the returns in private equity deals come from the 25% of companies bought for the lowest multiple. It’s unsurprising that most searchers worry about overpayi…
Read more
2 years ago · 4 likes · Buy Small Sell High
Buy Small Sell High
What Are Your Odds Of Finding A Company?
Thank you for reading Buy Small Sell High! Subscribe for free to receive new posts and our broker list containing the contact information of over 5,000 business brokers. TLDR: Searching is a volume game. Use the widest possible criteria to increase number of potential companies. Use low cost (time and money) channels like brokered deals, when possible. S…
Read more
2 years ago · 5 likes · 2 comments · Buy Small Sell High
Buy Small Sell High
What Search Model Is Right For You?
Thank you for reading Buy Small Sell High! Subscribe for free to receive new posts and our broker list containing the contact information of over 5,000 business brokers. TLDR: If you can stomach the risk of the personal guarantee, the self-funded model offers more upside, speed and flexibility than the traditional model…
Read more
2 years ago · 3 likes · Buy Small Sell High
Buy Small Sell High
Self-Funded Search Tool Box
Thanks for reading Buy Small Sell High! Subscribe for free to receive new posts and our broker list containing the contact information of over 5,000 business brokers. After a 6-months self-funded search, we just closed the acquisition of our small business. We received a ton of support from the small business community especially on Searchfunder and Twit…
Read more
2 years ago · 5 likes · 2 comments · Buy Small Sell High