QoE & Due Diligence

SBA now requires a QoE on 7(a) acquisitions of $3M+. Learn what the report must include, who engages it, and what buyers and brokers should do.

Learn how to read a CIM like a pro: what each section should tell you, how to pressure-test add-backs, and what to ask the broker before an LOI.

In a recent episode of the EntreLeadership podcast with Dave Ramsey, a caller shared a cautionary story that every aspiring business buyer needs to hear. The caller had taken out an SBA loan to expand their daycare business and open a second location. But what seemed like a smart move quickly turned disastrous.

When you’re buying or starting a small business, there’s a lot to think about! From staffing and systems to customer relationships and finances, many things will need your attention. One area that’s often overlooked but can have a significant impact on your bottom line is commissions. Understanding how small business commissions work is essential to ensure you’re not caught off guard by unexpected expenses or unbalanced compensation structures.

When it comes to accounting methods, cash basis accounting is often favored by small business owners for its simplicity. Under this approach, revenue is only recognized when cash is received, and expenses are recorded when cash is actually paid. While easy to manage, this method can distort the financial picture by failing to align revenue and expenses with the periods they relate to, resulting in inconsistent, “lumpy” financials.

Signing a Letter of Intent (LOI) is a big step in acquiring a business. It signals serious intent, begins due diligence, and often involves commitments of time, effort, and money. But being under LOI does not guarantee you should go all the way to closing. Sometimes walking away is the smartest decision you can make. In this article, you’ll discover three critical reasons to walk away before closing so you can avoid buying the wrong company and instead, invest in the right one.

If you’re preparing for a business acquisition, you’ve likely heard that a Quality of Earnings (QoE) report is a must-have in your due diligence toolbox. But how much does it cost, and what exactly determines that price tag?

The cost of a QoE report can vary widely,

One of the most common questions business buyers ask is, “How much working capital should I include in my deal?” It’s a critical concern—because if underestimated or miscalculated, working capital can derail even the most promising M&A transactions.