Journal
The journal
Long-form guides written to survive scrutiny from a lender, an accountant, or a skeptical spouse. Each one ends with what to do next.
Start with What SDE is and how to rebuild it if you are new to small-business acquisitions. Everything else depends on getting earnings right.
- ValuationWhat SDE is, and how to rebuild it yourselfSeller's discretionary earnings (SDE) drives the price of most small businesses. How it is calculated, which add-backs survive scrutiny, and how to rebuild it yourself.
- ValuationHow to value a small businessWhy the multiple is an output, not an input; what makes a small business riskier or safer; and how to turn verified SDE and real risks into a defensible offer.
- FinancingHow SBA 7(a) loans work for acquisitionsSBA 7(a) initial acquisition rules under SOP 50 10 8.1: loan limits, terms, the 10% equity injection, standby seller notes, 1.25× coverage and guarantees.
- FinancingSeller notes and full standbyHow seller financing works when buying a small business, what full standby means under SBA SOP 50 10 8.1, and questions to settle with the lender and attorney.
- DiligenceThe due diligence checklistThe 19 due diligence checks in the Arcane University workbench, grouped into financial, operational, legal and market risk, with what each check means and what a bad answer looks like.
- Deal termsWriting a letter of intentWhat a small-business letter of intent (LOI) covers, which terms are binding, and how to write one that moves the deal forward without giving away your leverage.
TransitionThe first 100 daysA practical plan for the first 100 days after closing on a small business: keep customers and staff, learn before changing, secure cash and controls, then improve one thing at a time.- Due diligenceTurn a red flag into a question you can answerA practical red-flag checklist for business buyers: unsupported add-backs, concentration, owner dependency, equipment, leases and working capital.
- Acquisition modelingAsk what happens when the plan is wrongCompare base and downside acquisition scenarios using SDE, replacement compensation, capex reserves, debt payments and liquidity.