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 […]
Understanding DSCR Read More »
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
Asset Sale vs Stock Sale – What’s the Difference? Read More »
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
Small Business Optimism Up Read More »
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,
Sellers More Willing to Offer Financing Read More »
The restaurant sector continues its post-pandemic recovery, as transaction volume remains steady year-over-year, yet 8% lighter than the previous quarter. Buyers focused on higher-priced restaurants, with the median sale price up 9% since last year and 13% since last quarter. Robin Gagnon, co-founder of We Sell Restaurants, comments, “We are seeing deal sizes much higher
Restaurant Sale Prices Up 9% as Buyers Pay Premium for High Performers Read More »
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
Small Business Sales Pick Up Steam Read More »
Source: US News & World Report Registering with Financial Crimes Enforcement Network Many U.S. small businesses will need to register with an agency called the Financial Crimes Enforcement Network (FinCEN) by Jan 1, 2025 as part of an act passed in 2021 called the Corporate Transparency Act. The act was intended to get a look
New Small Business Regulations Read More »
In the marketplace of Main Street types of businesses (generally ranging in total annual sales up to $2 million) the length of time it takes for a business to sell under confidential disclosure conditions stays fairly even over time. A recent market survey of business brokers reports that it takes, on average, about 9 months
Selling Days Stay Even Read More »