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Buying and selling a business, explained

No jargon and no assumed knowledge. If you have never done this before, start anywhere.

Financing 8 min

SBA 7(a) loans, explained for someone buying their first business

How SBA 7(a) acquisition loans work: the 10% down payment, the $5 million cap, what lenders check, how long approval takes, and what the guarantee means.

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Due diligence 9 min

The due diligence checklist for buying a small business

What to request, in what order, and what each document is actually meant to prove. A due diligence checklist for first-time buyers of a small business.

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Deal process 7 min

What a letter of intent is, and what you are agreeing to when you sign one

A letter of intent sets the price, structure and timeline of a business purchase before the lawyers start. What it binds, what it does not, and what to include.

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Valuation 7 min

SDE vs EBITDA, and why using the wrong one costs you money

SDE and EBITDA measure different things and carry different multiples. Using the wrong one against the wrong multiple is how owners arrive at a badly wrong price.

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Valuation 7 min

How valuation multiples work, and what actually moves yours

Small businesses sell for a multiple of earnings, usually 2 to 4 times SDE. What decides where a specific business lands, and how an owner moves it up.

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Deal process 7 min

Asset sale or stock sale, and why the two sides want different ones

In an asset sale the buyer takes the assets and leaves the liabilities. In a stock sale they buy the company whole. What changes for tax, risk and contracts.

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Financing 7 min

Seller financing, explained for the person on each side of it

Seller financing means the seller takes part of the price over time. Why it widens the buyer pool, what it costs the seller, and how SBA standby rules work.

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Deal process 6 min

What escrow does in a business sale, and why you should insist on it

Escrow holds the buyer's money with a neutral third party until both sides have done what they promised. How it works in a business sale, and what it costs.

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New guides, what deals are actually closing at, and the parts of the process nobody explains. Written for beginners.

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