Acquisitions

Business Broker Acquisitions

1.Preparation and Strategy

  •  Acquisition Goals
  • Industry focus (e.g., healthcare, retail, manufacturing)
  • Deal size (revenue, EBITDA targets)
  • Geographic preferences
  • Strategic vs. financial acquisitions
  • Build Buyer Profile
  • Individual buyers vs. private equity vs. strategic corporations
  • Financial capacity & deal criteria
  • Experience and management capabilities
  • Set Up Legal & Operational Structure
  • Broker licensing (state-specific)
  • Form entity (LLC, S-Corp)
  • Confidentiality & engagement agreement templates
  • CRM and deal tracking systems

2. Deal Sourcing

  • Identify Acquisition Targets
  • Direct outreach (cold calling, mailers)
  • Online marketplaces (BizBuySell, DealStream)
  • Industry networks, trade shows
  • Referral partnerships (CPAs, attorneys, financial advisors)
  • Qualify Sellers
  • Motivation to sell
  • Reasonableness of valuation expectations
  • Clean financials and documentation
  • Transition support willingness

3. Valuation and Analysis

  • Financial Review
  • Recast financials / seller’s discretionary earnings (SDE)
  • EBITDA and cash flow analysis
  • Debt obligations and liabilities
  • Business Valuation
  • Market comparables
  • Asset-based or income-based valuation methods
  • Add-backs and adjustments
  • Due Diligence Checklist
  • Financials (3–5 years)
  • Tax returns, payroll records
  • Lease, contracts, legal exposure
  • Customer concentration, supplier risk

Deal Structuring and Negotiation

  • Letter of Intent (LOI)
  • Offer terms
  • Timeline
  • Confidentiality & exclusivity clauses
  • Deal Structure
  • Asset vs. stock purchase
  • Earn-outs, seller financing, holdbacks
  • Working capital adjustment
  • Negotiation Tactics
  • Anchoring value
  • Managing buyer/seller emotions
  • Counter-offers & deal-killers

5. Closing Process

  • Legal Documentation
  • Purchase agreement
  • Assignment of leases, IP, vendor/customer contracts
  • Employment or consulting agreements
  • Funding the Deal
  • SBA lending
  • Seller notes
  • Equity partners
  • Transition Planning
  • Training & handover
  • Customers