Author name: Chris Barrett

Through the use of technology and strategic thinking, Chris brings executive-level financial support into your business.

Overview of business acquisition financing strategies

Business Acquisition Financing Strategies

Financing a business acquisition can be both thrilling and intimidating. The process involves navigating complex financial structures, understanding the cost of capital, and determining the best sources of funding to reach your objective.

Unlike the straightforward nature of something like a home mortgage, business acquisition financing is much more complicated, often involving a blend of debt and equity. This blend, known as the capital stack, is used to optimize both affordability and long-term growth.

Let’s explore the capital stack, its components, and how to strategically finance your next acquisition.

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Stacked coins with a handshake in the background, symbolizing financial growth, successful partnerships, and business agreements.

What a Quality of Earnings (QoE) Analysis is NOT

A Quality of Earnings (QoE) analysis plays a critical role in business acquisitions by providing deeper insights into a company’s financial health. It focuses on cash flow quality and the sustainability of earnings, helping investors and buyers understand the business they are purchasing.

However, to fully grasp the value of a QoE, it’s just as important to understand what it is not. In this article, we’ll explore three common misconceptions about QoE analyses. Additionally, we’ll show how they differ from projections, audits, and valuations, setting clear expectations for business owners and investors.

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A smartphone releasing floating Euro banknotes, symbolizing effective cash flow management, business financial health, and streamlined digital transactions.

Top 5 Cash Flow Management Tips for Small Businesses

Managing cash flow is essential for the survival and growth of any small business. Without proper cash flow management, even profitable businesses can struggle to sustain daily operations, fuel growth, and prepare for unexpected challenges. Whether you’re trying to bridge cash gaps, control expenses, or plan for future investments, keeping a close eye on your cash flow is the key to staying ahead.

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Businessperson calculating net working capital by stacking coins, important for managing liquidity during business acquisitions.

Calculating Net Working Capital: The Ultimate Deal Killer

Business acquisitions often fail due to misunderstandings surrounding net working capital (NWC). Understanding how to calculate net working capital and managed can make or break a deal, especially when purchasing a business.

In this guide, we’ll explore why NWC matters, how to calculate it effectively, and what to consider during the due diligence process. Whether you’re a buyer or seller, understanding net working capital is critical to ensuring a smooth and fair transaction.

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how to buy a med spa

How to Buy a Med Spa

In this episode of the ‘I Bought a Business’ podcast, Chris Barrett, CPA of Midwest CPA, interviews Dhruv Patel, a former Army Medical Corps officer who successfully transitioned into Med Spa acquisition entrepreneurship. Together, they explore Dhruv’s journey from military service to owning a Med Spa. Additionally, they discuss the steps involved in buying a Med Spa and the challenges Dhruv faced during the acquisition process. 

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Entity Structure for Small Business

Choosing the Best Entity Structure for Your Small Business

Struggling to decide the best entity structure for your small business? This guide breaks down the benefits and tax implications of C-Corps, Partnerships, S-Corps, and Sole Proprietorships to help you make an informed decision. The right entity structure can significantly impact your business’s tax obligations, growth potential, and overall operations. Let’s dive in and explore which option best fits your needs.

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How to buy a business

Understanding Restricted Stock Units (RSUs) and Their Tax Implications

Restricted Stock Units (RSUs) are increasingly becoming a go-to choice for companies to reward and retain their employees. If you’ve received RSUs, you might be wondering how they work and, more importantly, how they’re taxed. In this guide, we’ll break down everything you need to know about RSUs and their tax implications.

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