Debt service coverage ratio (DSCR) is a key metric when buying or selling a business, especially for buyers looking for acquisition financing. Both lenders and buyers use this financial ratio to assess whether a company’s income can adequately cover its current and future debt payments, including new acquisition loans. In this article, we’ll explain what […]
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When it comes to buying and selling a business, both parties must decide whether to structure the deal as an asset sale or a stock sale. These two different approaches to transferring ownership have implications for both the buyer and seller. This article will give you an overview of the differences and highlight the pros
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Market Outlook from BizBuySell After a year of financial strain driven by persistent inflation and high interest rates, small business buying and selling activity has demonstrated growth and resilience. Sellers are choosing to enter the market rather than wait for a higher price, and buyers are choosing to put their money forward rather than wait
The National Federation of Independent Business (NFIB) Small Business Optimism Index rose by eight points in November 2024 to 101.7, after 34 months of remaining below the 50-year average of 98. This is the highest reading since June 2021. Of the 10 Optimism Index components, nine increased, none decreased, and one was unchanged. Following last month’s record
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As the business-for-sale market adjusts to today’s high interest rate environment, seller-accommodated deal structures have become more common. Moreover, banks have tightened their lending standards and small businesses are more sensitive to higher borrowing costs. This leaves many sellers in the position of having to get comfortable with structuring the deal, including financing and earnouts,
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Small business acquisitions grew 10% over the previous year and 3% over the previous quarter, according to BizBuySell’s Insight Data, which tracks and analyzes U.S. business-for-sale transactions and sentiment from business owners, buyers, and brokers. A total of 2,384 businesses changed hands in the first quarter, representing an enterprise value of $1.8 billion, which is
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What Is The SBA Loan Guarantee Program? The Small Business Administration (SBA) loan guarantee program is a federal government program aimed at helping small business by offering local banks federally-backed loans to qualified borrowers. What Can the SBA Loan Program Do for A Borrower? 3 Main Lending Program Types (1) 7(a) Program (2) 504 Program