New Searcher Reader Guide
Big Deal Small Business: New Searcher Reader Guide
I update this guide from time to time with new links & posts.
I chat with new searchers constantly that are in the learning & exploring phase of search, asking crucial questions like “traditional or self-funded”, “local or national”, “big or small”, etc.
Turns out I’ve written about a lot of these in the past, but it’s a pain to find them amidst the ~100 issues I’ve written so far..
As a result, below is a new searcher reader guide - just an organized table of contents of posts that I’d suggest reading if you are a new searcher or considering becoming a searcher.
New Searcher Reader Guide
Search Process:
SMB Buying Resources - great stuff written & said by people more experienced than me about ETA/search
Search Fund Support Programs - potential options for search support
Navigating the SBA 7(a) Maze - walk-through of how to get an SBA loan for your deal
Trusted Search Deal Team - the advisors & support you need to get a deal done
Using a CRM in Search - staying organized through a CRM
Broker Questions - how to handle the gatekeepers of SMB deals
Sprints & Marathons - managing your own energy during search
Search Target Focus:
Deal Structuring
SDE vs EBITDA vs Cash Flow (Updated) - understanding the P&L in a small business deal
Equity Deal Structure - structuring a self-funded search's equity (if you're considering bringing on investors)
How Much Equity Can I Get? - understanding the theory behind equity cost of capital and how searchers get to retain equity
Math of Traditional vs Self-Funded Search - walk through different scenarios in both traditional search & self-funded search
Debt & Downside Protection - how to think through the risk of adding debt to an SMB acquisition
Due Diligence
Meeting the Owner - how to handle first meetings with sellers
Creative Industry DD Tips & Hacks - basics of industry DD
Quality of Revenue - assessing how businesses make money
Breaking the Model - how to set up a financial model
Addback Magic - understanding EBITDA adjustments
Reason to Exist, Part 1 & Part 2 - testing the target's value in the market
Compromising to Close - getting a deal done requires accepting risk, but which risk?
___________________________________________________
Conclusion
I hope that's helpful if you're new to search or considering it. Of course, feel free to reach out anytime if you'd like to chat and discuss your plans, I'm always happy to weigh in and share my thoughts.
You can hit reply to this email or DM me on Twitter.
Hope to be sharing a more substantive update about my own search deal next week! Fingers crossed...
Thanks,
Guesswork Investing
P.S. I run a local building maintenance contractor in Seattle, WA that focuses on single family residential & commercial properties. To the extent you know folks in the RE industry in Seattle (particularly property managers), I’d always appreciate intros.