Thread by @SMB_Attorney

We’ve represented clients in billions of dollars of transactions.

Here are the 50 most important things you need to know about buying a small business:

#SMBxWharton

1. The better you are with finance, the more you need to do a quality-of-earnings (QoE). Everyone should do a QoE.

2. Certainty to close is the most important factor when choosing a lender. Over-shopping for rate is a mistake.

3. Build relationships with good brokers. It's how you'll find a good business.

4. An off-market deal might come with better terms, but it will be 10x harder to close than a brokered deal.

5. Buy a business from a good person. It will eliminate a lot of unforeseen problems.

6. Raising capital is not as hard as you'd think. Don't give away the farm b/c you don't want to ask for money. Many folks want to give it to you. Find them!

7. There's nothing wrong with buying a job, if you want a job.

8. If you want to buy a larger company, that's more achievable than you might think. See #6 above.

9. There are actually some good businesses sitting in plain sight on BizBuySell.

10. "Getting an SBA loan is like getting a mortgage from the DMV," a pain in the ass. But the terms are great.

11. Before your transaction heats up, and deal fatigue sets in, get everyone locked into a binding purchase agreement.

12. You can't control who the seller hires for legal counsel. They can kill your deal if you don't hold their hand.

13. Some sellers don't want to sell to PE and they don't want to sell to "diet PE" (searchers). Present yourself as an average Joe and you'll get a better deal.

14. The resources here on Twitter and other sites are real. We've seen under the hood and people are doing deals.

15. "Mile to the first, inch to the second." Buyers who figure this out, are buying a ton of businesses, and fast!

16. Searching is lonely. Find a tribe of other buyers who you can bounce ideas off and commiserate with.

17. "Do no harm" is overhyped. Many buyers break the glass and make changes early and it goes fine.

18. Sellers will talk nice up front. They get tense down the stretch.

19. The chances of your acquisition going to zero are low. The real risk is the time suck of getting stuck in an unscalable grind for years and years.

20. Hide your Twitter feed and never tweet about an active deal. The seller will see it.

21. Find a business in a city where you're happy and have support. It's going to be hard.

22. Make sure your spouse is on board and understands the assignment. If they say "it's me or the business," you're in deep sh*t.

23. Sellers can be "dumb like a fox." Watch them closely.

24. Seller's push back on exclusivity in an LOl is a massive red flag. Don't waste your time.

25. Push back on the noncompete in the purchase agreement is a massive red flag. If they compete, they'll crush you.

Part 2 to follow!

**Please note that all information provided in this thread or otherwise by @smb_attorney is intended strictly for educational and informational purposes and not in seeking pecuniary gain or legal employment.**

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