How to Read a Quality of Earnings Report as a Seller
How to Read a Quality of Earnings Report as a Seller Quick Answer A quality of earnings report strips out one-off items and normalizes expenses to show your true sustainable cash flow and earnings power to buyers. As a seller, running this analysis before marketing lets you control the narrative, anticipate buyer questions, and defend […]
Stock Sale vs Asset Sale: Which is Better for Sellers?
Stock sale vs asset sale is the single biggest tax decision most business sellers ever face. Picking the wrong structure on a $10M exit can hand the IRS an extra $1.2M to $1.8M and leave you wondering why your wire was so much smaller than the headline number. This guide walks through the seller-side math, […]
Purchase Price Allocation: How It Affects Your Taxes
Purchase Price Allocation: How It Affects Your Taxes Quick Answer Purchase price allocation divides the total sale price into separate asset values, which determines tax basis, depreciation schedules, and reported gains or losses for both buyer and seller. The buyer uses the allocation to plan future tax deductions through depreciation and amortization, while the seller […]
Transition Service Agreements: Key Considerations for Sellers in 2026
Transition Service Agreements: Key Considerations for Sellers in 2026 Transition Service Agreements (TSAs) in 2026 LMM deals define post-close services the seller provides the buyer during the integration period. Key considerations: scope (which services and for how long), fees (typically at-cost plus 5-15% margin, or fixed monthly), liability caps (usually capped at fees received), termination […]
Understanding Holdbacks in Business Acquisitions
Understanding Holdbacks in Business Acquisitions Quick Answer A holdback is a portion of the purchase price, typically 5% to 15%, placed in escrow after closing to protect the buyer from undisclosed liabilities, incomplete financial records, or covenant breaches that surface during the transition period. The held funds are released to the seller after an agreed […]
What Stays and What Goes in Working Capital for Business Sales
What Stays and What Goes in Working Capital for Business Sales Quick Answer Working capital in a business sale includes current assets like cash, accounts receivable, and inventory that transfer at closing, while the seller typically retains reserve funds and personal assets unrelated to operations. The purchase agreement should define a net working capital target […]
Quality of Earnings: What Buyers Need to Know
Quality of Earnings: What Buyers Need to Know Quick Answer A buy-side quality of earnings review is the financial diligence work a buyer commissions to validate the seller-quoted EBITDA before signing definitive documents. The QoE provider rebuilds the target’s trailing twelve-month earnings from the general ledger, tests revenue recognition cohort by cohort, normalizes working capital, […]
Valuing and Selling Your Appliance Repair Business
Valuing and Selling Your Appliance Repair Business Valuing and selling your appliance repair business in 2026 splits between two math frameworks depending on scale. Sub-$500K SDE operators use SDE multiples of 2-3.5x. Above $500K SDE, EBITDA multiples of 3-5x take over. What drives premium: OEM authorization (LG, Samsung, GE, Whirlpool), service-agreement recurring revenue percentage, service-territory […]
Selling Your Business? Consider the Real Estate Factor
Selling Your Business? The Real Estate Factor Reshapes the Whole Deal Quick Answer The real estate factor in a business sale is the decision about whether owned property goes with the operating business, stays with the seller through a sale leaseback, or is sold to a separate buyer. For vehicle services, healthcare offices, and specialty […]