Yesterday, I received an email from a prospective client. One that I would have loved to have helped. The client is looking for pari passu acquisition financing.
There are a handful of lenders that do this very well. He had contacted each of them. 2/x
At this juncture, there is nothing I can do to help him. He has presented to each of them and pulling me in to help isn't an option.
SMB searchers: don't let this be you. Pull me in at the start of your deal when you have the signed LOI or shortly before. 3/x
Engaging me early on enables me to ensure that your structure works before you execute the LOI.
I can also ensure that your deal is presented correctly to each of the lenders and run my normal process. It will work to your benefit and will make things go smoothly. 4/4
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This platform is a deal aggregator that pulls thousands of on market business broker listings consolidating them into an easy to navigate user dashboard where you can sort by price, industry, revenue, and other variables. 2/x
As a buyer of a small to medium sized business, one of the most substantial decisions that you will make is which lender to select to finance your acquisition.
This is how to proceed if you are taking the DIY approach instead of using a loan broker
Last night I was at a networking event and explained to someone there that each of the deals that I'm working on has come from SMB Twitter.
The person laughed. Twitter what?!
The community here is strong and the amount of acquisitions taking place has never been higher. 1/x
If you or someone that you know is looking to buy a small to medium sized business, there has never been a better time.
I would love to connect with you and be part of your journey towards SMB ownership. Please feel welcome to put a time down on my calendar to connect 2/x
Unlike banks that have to fit a deal inside of a specific "credit box," I work with all types of banks from more conservative to more aggressive, and am not confined by one bank's underwriting criteria. 3/x
Things that go a long way in the SMB acquisition process:
➡️ Having the right team of professionals in place
➡️ Starting key items like life insurance, landlord agreement, equity early in the process
➡️ Having a well organized and fully complete data room of your deal file
This thread has a discussion of what a landlord agreement is and why it's important to your deal:
Perhaps you're a searcher looking to buy a business.
Where do you start?
Below is a list of helpful threads for some general guidance. I've also included a link to my calendar as well as a link to a compilation of professionals in the SMB space.
1/x: Reasons that a well drafted business plan is critical for an SMB acquisition
There is an exodus that is unravelling that I am watching with a front row seat.
Wall Street Bankers are choosing to leave their jobs to pursue ETA.
Over the past month, I have spoken with a number of people in this category.
Why is this happening? I will dive in here:
1/x: The Ability To Control Your Own P&L:
There is a saying in banking, "Make More Than You Cost."
If you're a "Rainmaker" in banking, a disproportionate part of your profits are going to the firm.
In SMB, these go into your bank account.
2/x: The Opportunity To Re-Gain Your Time:
Working 80 hour weeks out of college is manageable. You are young, full of energy, and can grind through it, knowing that there is a large paycheck at the end of the tunnel.
Once you're older with a family, it is more difficult.