ETA

Quality of Earnings for SMB Acquisitions

SMB PE Expert Interviews: The Critical Role of Quality of Earnings for SMB Acquisitions

A Quality of Earnings (QoE) report is one of the most critical tools in the acquisition process especially for SMB buyers. In this podcast, we break down key insights from Chris Barrett of Midwest CPA, who’s helped dozens of buyers uncover red flags, normalize earnings, and protect their investments. Whether you’re a first-time buyer or a seasoned acquisition entrepreneur, this guide will help you grasp why QoE matters, what it includes, and how to use it to negotiate smarter, close faster, and avoid costly surprises.

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colorful image with people from various industries to represent the options available for entrepreneurship through acquisition.

Entrepreneurship Through Acquisition: Finding Your Right Industry

When you begin your journey toward buying a small business, it’s easy to get caught up in the latest trends, or to think you need to follow whatever the latest tech startup or industry favored by private equity is. The truth? Opportunity is everywhere. Right in your hometown, small business owners are running laundromats, roofing companies, bakeries, plumbing services – and generating wealth. They aren’t succeeding because they all got swept up in the latest industry hype: they’re succeeding because they chose the right business for their particular skill set.

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Split image showing a business acquisition transition: one side features a handshake during a business deal, the other shows a new owner leading a strategy meeting, illustrating the importance of a strong business acquisition transition plan.

Business Acquisition Transition Plan: 3 Mistakes You Must Avoid

Buying a business is an exciting milestone, but it’s only the beginning of your entrepreneurial journey. The real work begins after the deal closes. While many buyers focus on acquisition tactics, few are prepared for what happens next: the transition. Without a solid business acquisition transition plan, the success of the purchase—and the future of the business—could be at risk.

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Illustration comparing debt and equity financing for small business acquisition, featuring a bank and briefcase with cash on one side and business professionals shaking hands on the other

Debt vs. Equity: Choosing the Right Financing for Your Small Business Purchase

When embarking on the journey to purchase a small business, one of the most critical decisions you’ll face is determining how to finance the acquisition. The two primary avenues are debt financing and equity financing. Each comes with its own set of advantages, risks, and implications for your future as a business owner.

In this article, we’ll delve into the nuances of both financing options, helping you make an informed choice that aligns with your financial goals and risk tolerance.

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buying a small business

How to Buy a Small Business: Expert Insights from the Salt Lake City ETA Panel

In a packed event at Edison House in Salt Lake City, a panel of experts from the ETA (Entrepreneurship Through Acquisition) community shared their hard-earned wisdom on how to buy a small business. Hosted by Chase Murdock of Durable, the conversation covered the entire acquisition journey—from building your deal team to closing day nightmares.

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J Curve in Business Acquisition

Buying a Business? Here’s Why the J Curve Matters More Than You Think

The J Curve in business acquisition is a financial concept illustrating the typical earnings trajectory following a company purchase. Visualized as a “J”-shaped graph, it highlights an initial decline in profitability—usually EBITDA—immediately after the acquisition, followed by a gradual, sustained recovery and growth.

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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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