Philly SMB

Business Buyer currently in Philadelphia area. DMs are Open!

[Philly SMB @PhillySMB]

@bonapartay motor pool vibes

[Philly SMB @PhillySMB]

@STLChrisH Sales generally but it depends. Do they have a cofounder with complementary skills? What industry?

In any case, I’d bet on someone who is a motivated and happy entrepreneur vs an unhappy one that is excellent at sales.

[Philly SMB @PhillySMB]

@bonapartay congrats on the growth man!

[Philly SMB @PhillySMB]

For $5-15M deals, what are market terms for Indemnity, Reps, & Warranties? How would the following compare?

Escrow: 3%, 1/2 at 6mo., 1/2 at 12mo. ability to offset against Seller Note

Nonfundamental R&W: Cap of 20%, Basket = 0.5% (non-tip), Survival Period = 15 mos

[Philly SMB @PhillySMB]

@JaredDHardin @SMB_HEFF Yes, in all share classes and in all forms of control

[Philly SMB @PhillySMB]

@SMB_HEFF Conventional all day, these types of deals are right in my wheelhouse

If you wanna chat about it happy to!

[Philly SMB @PhillySMB]

ETA Friday means LOI sent ✅

Very excited about this one! Great business with wonderful (retirement age) sellers.

Last deal died due to YTD decline and sellers not accepting LOI amendment terms (not quite at retirement age so still some juice to rebound -- I hope they do!)

[Philly SMB @PhillySMB]

@dennis_unrein @ChrisMarcRosa pref cut because it’s a debt-like structure and thus seen as not equity (according to SBA)?

[Philly SMB @PhillySMB]

@CTW_SMB

[Philly SMB @PhillySMB]

Happy ETA Friday folks!

This morning, I had the distinct pleasure of sending a $4M price reduction (~35%) in a LOI amendment...

Did I want this? "Chances are near zero" - Oppenheimer
What am I expecting as a result? **see below**

[Philly SMB @PhillySMB]

@rob_smb

[Philly SMB @PhillySMB]

@IndustrialTexas

[Philly SMB @PhillySMB]

@CTW_SMB totally! And context matters for sure…

think TTM included what is now evident as an anomaly year and thus a time reference range & new profit peg (and valuation EV) is reasonable

[Philly SMB @PhillySMB]

@rob_smb pre QofE thankfully

YTD / updated $ info + status quo of industry

[Philly SMB @PhillySMB]

@SMB_Attorney K&E walked so Cristiano Ronaldo could run

[Philly SMB @PhillySMB]

The key to most self funded searches is longevity. Think similar to time in the market rather than timing the market.

Significantly easier if you have/create financial runway to do so.

Results TBD if you’re like me: hard headed / have a bone to pick with the status quo.

[Philly SMB @PhillySMB]

@SMB_HEFF pulling the reverse uno card

[Philly SMB @PhillySMB]

@dig_deeper1 AZ or state should have an association that has a blank/template purchase contract. I would just ask friends or use your own prior copies and empty out the docs for new use (via a paid pdf subscription for $50 or AI)

[Philly SMB @PhillySMB]

@guessworkinvest Sounds good 🫡

[Philly SMB @PhillySMB]

Ladies and gentlemen, we are about to have a signed LOI 🤠

[Philly SMB @PhillySMB]

For large #ETA self-funded deals, who you calling?

in LOI negotiations for a $3.5M EBITDA GovCon Prime business🤞

< 3.25x Purchase Price & < 2.5x Cash at Close

likely #SBA + Parri Passu + equity raise deal

hair is customer concentration but has contracts with 4+ yrs runway

[Philly SMB @PhillySMB]

@bibelhausen We will be raising equity and always happy to chat debt solutions as it’s a big world 🫡