Category Archives: Business brokers

What on earth is a coverage ratio in financing with an SBA Loan?

When dealing with financing of various sorts you will come across the term “coverage ratio”. It my be in the context of “Interest coverage ratio”  or “debt coverage ratio” or some other similar nomenclature. Here’s the basic concept of a coverage ratio. The coverage ratio is designed to determine what margin for error there is […]

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What Price is the Right Price to buy a Small Business

If you decide you want to buy a business you need to prepare yourself for the rather inconsistent pricing methodologies used for setting the asking prices for small businesses. You shouldn’t confuse the asking price for a business with the value of the business or what finance professionals call a Business Valuation or Business Appraisal. […]

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Confidentiality when Buying a Business

A lot of things can go wrong when buying a business. Here’s some background on the Importance of Confidentiality. If you want to buy a business….understanding this issue can be the difference between buying a business and losing a good opportunity. Below is a 2 minute video discussing the importance of confidentiality when you buy […]

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How to Make an Offer to Purchase a Small Business

Buying a small business is a unique process in many ways. Here is a list of “elements” of a contingent offer that might make sense when considering a purchase. Contingencies are very important when making an offer. A buyer is not likely to get full access to all of the business books and records without […]

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