SMB

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.

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.

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.

Acquiring a business is a significant investment, and due diligence is critical to ensure a successful transaction. One step in the due diligence process is a Quality of Earnings (QoE) report. In this article, we explore seven key benefits of Quality of Earnings reports that every business buyer should know.

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.

Planning to acquire a business? A Quality of Earnings (QoE) report is crucial to understanding the financial health of your investment. This article explains how QoE reports help uncover the true value, identify potential risks, and support a successful acquisition.