Sellable Is Not the Same as Institutionally Ready What Lower Middle Market Buyers Look for Beyond Profit By Joshua Carnes | Lion Business Advisors A profitable business may be sellable without being ready for a lower-middle-market process.
To compare letters of intent, place every offer into the same categories: stated purchase price, cash delivered to the seller at closing, expected closing adjustments, deferred or contingent consideration, financing and approval conditions, exclusivity, post-closing obligations, and
Direct answer: Defensible earnings are normalized SDE or EBITDA that reconcile to the company's source records, reflect a realistic post-closing cost structure, and can withstand buyer and lender review. The objective is not to produce the largest
Direct answer: A business does not have to be perfect to be sellable. It needs a transferable source of value, a buyer who can understand and finance the risk, and terms the owner is willing to accept.
DIRECT ANSWER SBA SOP 50 10 8.1 takes effect October 1, 2026. It matters primarily when a buyer intends to use SBA-backed financing for a business acquisition. The update does not broadly change conventional, strategic, private-equity or
Quick Answers: Controlled Competitive Tension What is controlled competitive tension? Controlled competitive tension is a structured sale process in which several qualified buyers evaluate a business within a defined timeline. The objective is to create legitimate competition
Quick Answers: Targeted Buyer Profiling What is targeted buyer profiling? Targeted buyer profiling is the process of identifying which types of buyers are most likely to value a company’s financial performance, market position, management team, customer base,
Quick Answers: Post-Closing Obligations in M&A What are post-closing obligations in a business sale? Post-closing obligations are the responsibilities and financial exposures that continue after ownership transfers. They may include transition support, consulting or employment terms, earn-outs,
Selling a Business for Maximum Value Is a Process Direct answer: Selling a business for maximum value requires a managed process, not simply a listing. The owner must establish defensible earnings, explain the opportunity and its risks,
Quick Answers: Contractual Transferability in M&A What is contractual transferability? Contractual transferability refers to whether a customer agreement, vendor contract, lease, license, or other business arrangement can continue after ownership changes. Some agreements transfer automatically, while others
