Bruce Marks, MBA, CM&AA

SMB & ETA Acquisition Lender | Author | Closed $560 Million in 10+yrs| SBA loans from $2.5 - $10.0 million | tweeting real SBA stories | War Story Saturday 🪖

[Pramod | Leadership & Mindset @pramod2204]

@sbabmarks @MichaelKeck Setting realistic expectations early can prevent misunderstandings later. Discussing owner compensation and rent upfront helps both sides evaluate a deal with greater clarity and confidence.

[Michael Keck @MichaelKeck]

@sbabmarks One of the most common gaps I saw on the sell side. The fix starts before the CIM: walk the owner through which add-backs a lender and a QoE will actually accept, line by line. Expectations are much easier to reset in month one than at LOI.

[Michael Keck @MichaelKeck]

@sbabmarks Thanks, Bruce. Realistic expectations on both sides is what gets deals to the closing table. Grateful for the work you do with first-time buyers.

[Bruce Marks, MBA, CM&AA @sbabmarks]

And a BIG thank you for being proactive and doing that @MichaelKeck by doing so you are setting realistic expectations for both the seller and buyer.

[Michael Keck @MichaelKeck]

Bruce, this one hits home. I've sat in a lot of sellers' offices, and the kindest thing we can do on the sell side is walk through owner comp and rent with them before any buyer does. It's a hard conversation, but it protects their trust and their deal. Thank you for teaching this to the next generation of searchers.

[Bruce Marks, MBA, CM&AA @sbabmarks]

@Shakabuku All parties. The issue can be that often times the CIM has P&L information, while in diligence, we use tax returns.

[Bruce Marks, MBA, CM&AA @sbabmarks]

The difference between what the seller believes and the actual EBITDA. This is a deal killer. I explained this to over 90 students this past weekend. Thanks for the example!

[Patrick O’Connell DM for QoE-CPA Projects @SMBDealGuy]

A seller had been telling buyers his business generated $1.2 million in EBITDA. He had been saying that number for two years.

When the QoE team went in they found that his compensation was significantly below market rate and that he owned the building personally and charged the business a below-market lease. Neither was fraudulent. Both were real costs a new owner would absorb.
Normalized for both, EBITDA came in at $870,000.

The seller had believed his own number for so long the revision came as a genuine shock. Understanding what your business actually earns under a new owner is the most important question a seller can answer before going to market.

#QualityOfEarnings #MergersAndAcquisitions #BusinessAcquisition #TransactionAdvisory

[Bruce Marks, MBA, CM&AA @sbabmarks]

@TimothyVanceATX The deal can always move forward is a - maybe. Only if the seller will accept the lower purchase price. The reason he is selling matters

[Bruce Marks, MBA, CM&AA @sbabmarks]

I look forward to “what’s next” ! Thank you to all those that have been following, to all the new followers and to all those I have recently met. Being impactful will always be my “why” and I appreciate you choosing me to share your journey.

@sbabmarks

[Bruce Marks, MBA, CM&AA @sbabmarks]

I am flattered by the number of DM’s I receive asking if I would like to increase my followers by enlisting the help of a ghostwriter and having them create the content. To you, I say thank you!

However, to be authentic and impactful, I will continue to post my own WSS stories

[Bruce Marks, MBA, CM&AA @sbabmarks]

It’s the other 55 minutes where the true value is exchanged. And that is only the beginning of the journey together and so many more conversations. Understanding all the other factors it takes to pull down the deal is when you know you’ve landed the “one”.

[Bruce Marks, MBA, CM&AA @sbabmarks]

Thank you so much @JackieHirsch_ Feelings are mutual!!

[Jackie Ossin Hirsch @JackieHirsch_]

@walkerdeibel @sbabmarks Bruce is great!

[Bruce Marks, MBA, CM&AA @sbabmarks]

This is how you give back to this community. Yesterday I had the opportunity to be impactful and to provide knowledge to a packed house at WashU, Olin School of Business.

[KUMO | withkumo.com @withkumo_]

This week on SMBX:

1. SBA lender navigates $7 million acquisition with obstacles galore…SBA debt, seller financing, licensing hurdles, and more @sbabmarks

2. Profit’s always priority when it comes to sustainable employee pay and benefits @jamesonhaslam

3. How to stress test revenue, margins, collections, customer loss, and debt service before closing @withkumo_

4. Some SMBs need basic, boring improvements before growth can get interesting @SMB_RealEstate

5. A profitable small business isn't necessarily worth what you think when it's time to sell @DBarnettMoncton @robertplank

https://t.co/Krc4E2Hqed

[Bruce Marks, MBA, CM&AA @sbabmarks]

Wow, that’s a little bit of an increase 🤪

[Scott Oliver @SAOliver_Atty]

Change of ownership is the largest single segment of 7(a) lending and it has moved way up-market over the last 15 years.

These deals grew 7x from FY2010 to FY2025

For reference...

From ~$1.7B to ~12.4B

Appendix 15 of SOP 50 10 8.1, is a structural response from the SBA to a segment that grew massively, moved up-market, and has specific credit considerations as compared to structures that are not changes of ownership.

For you numbers people...

The dollar figure for change of ownership loans approved from FY2010 to FY2025 is...

$99,500,000,000.00.

There’s just something about writing the digits out instead of using a B that just hits harder.

[Bruce Marks, MBA, CM&AA @sbabmarks]

@AliAlHussain_ 1. A signed document confirming the prices from the supplier will not increase
2. A formal quotation as to the price expected over the next 6 to 12 months for each unit
3. A letter from the supplier breaking down the main cost drivers, which may include freight/foreign exchange

[Bruce Marks, MBA, CM&AA @sbabmarks]

https://t.co/POAiB7G70i

[Bruce Marks, MBA, CM&AA @sbabmarks]

https://t.co/POAiB7G70i

[Patrick O’Connell DM for QoE-CPA Projects @SMBDealGuy]

The J curve is talked about but Bruce breaks it down read here:

[Bruce Marks, MBA, CM&AA @sbabmarks]

@WritingMagnate Thanks for your comments. I have hundreds of war story Saturday post. Please go back into my profile and you can read them. Thanks.

[Bruce Marks, MBA, CM&AA @sbabmarks]

https://t.co/kNKGx6wQqT