Buying, Building, or Franchising
Acquisition, franchising, and greenfield builds each have different cash flow, liquidity, and risk profiles. Evaluate the option that fits your finances — and structure the deal so it doesn't bankrupt you on closing day.
Guides
Buying an Existing Business: How to Evaluate Seller's Discretionary Earnings (SDE) and Personal Cash Flow
If you're evaluating an existing business to acquire, the most important number on the listing isn't the asking price. It's the Seller's Discretionary Earnings, or SDE. Virtually every small business valuation under $5 million is based on some multiple of…
Franchising: Initial Fees, Royalties, and the Impact on Owner's Take-Home Pay
Franchising is marketed as a middle path between building a business from scratch and buying an existing one. You get a proven concept, established brand, operational playbook, and initial training. In exchange, you pay initial fees, ongoing royalties,…
Seller Financing: Structuring Payments to Minimize Personal Tax Hit and Maximize Cash Flow
Seller financing — where the seller of a business takes back a note for a portion of the purchase price instead of receiving all cash at closing — is one of the most common financing structures in small business acquisitions. It bridges valuation gaps,…
Due Diligence Checklist for Personal Financial Safety (Business Liens, Tax Debt, Lawsuits)
The financial analysis of a business you're considering acquiring — the SDE calculation, the valuation, the cash flow projection — matters. But it's not due diligence. Due diligence is the separate set of investigations that confirms the business is what the…
Partner Buyouts: Funding Mechanisms and Personal Tax Consequences
Partner buyouts are one of the most financially consequential transactions a business owner experiences, and one of the most poorly structured. Unlike a third-party business sale, where market dynamics force careful attention to terms, partner buyouts often…