Buying
SDE vs. EBITDA: Which Earnings Measure Fits a Small Business?
SDE and EBITDA can start from the same statements and produce different answers. The difference is usually owner labor, not extra cash.
Author
Dr. Matty Herrera
Founder of Official Business Doctor. Matty writes from direct experience buying a business with cash, securing SBA 7(a) financing, operating two locations with five retained employees, improving the operation, and later exiting at more than twice his equity.
Latest articles
Buying
Benefits and Risks of Buying an Existing Business
An operating history can remove some uncertainty, but it can also hide problems that a startup never inherits. Here is what deserves credit and what still needs proof.
Due diligence
Business Buyer Due Diligence Checklist and Document Request List
Due diligence is not a pile of files. It is a controlled attempt to prove or disprove every fact that supports the price, the financing, and the transition plan.
Financing
How to Buy a Business With Seller Financing
A seller note can close a funding gap and keep the seller invested in a clean handoff. It can also disguise a price the business cannot support.
Financing
SBA 7(a) Loan Requirements for Buying an Existing Business
The SBA guarantees part of a lender's loan. It does not approve a buyer based on one universal checklist, and current policy has a near-term version boundary buyers need to see.