A field manual for buyers
Buy a small business without buying the seller's story.
Practical guides to sourcing, diligence and financing, written for the buyer rather than the seller's broker.
| Reported EBITDA | $1,082,000 |
|---|---|
| + Owner pay above a manager’s | $120,000 |
| + Owner’s truckIt replaces a service van. The cost stays. | |
| + Legal fees, “one-time”Paid in 3 of the last 4 years. | |
| Seller’s adjusted EBITDA | |
| What a buyer can underwrite | $1,202,000 |
SBA acquisition loans, 2018 to 2020
The smallest loans fail most often.
- 5.5%
- of loans at or under $350K charged off
- 2.1%
- of loans from $2M to $5M
- 76%
- median loss when one fails
Cumulative charge-offs by count. Modern Acquirer analysis of SBA 7(a) FOIA data, FY2018-2020 change-of-ownership cohorts, cumulative charge-offs by count as of June 30, 2026. Read the analysis
Contents
The deal, in order
01Find the business
02Check the numbers
03Check what it depends on
04Pay for it
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Buyer's comparisons
The acquisition diligence checklist
The questions a buyer works through on revenue quality, add-backs, working capital and key people, in one template.
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