Our War Stories series is a testament to why it’s important to evaluate your deal comprehensively as a self-funded searcher. Sometimes uncovering an unknown that might not seem very relevant is what will keep you from making a poor decision. This is even more important for self-funded searchers new to acquisitions who don’t have experience spotting issues.

This calculation provides a clear overview of a company's financial health

Before buying a business of any size, acquiring detailed knowledge of the company's financial situation is essential. After all, you don't want to pay full price for a business that's constantly losing money without a clear plan for turning it around in the future.

My clients, a married couple, were hoping to buy a company and leave their corporate jobs behind. They found a business close to their home, and they happened to share some commonalities with the current owner. The deal seemed promising. The cash flow was high enough for both of them to earn wages and neither would have to work anymore. From a high level, the deal made a lot of sense.

A projection model is crucial for an SBA loan application when looking for funding to buy a business. Learn why it's needed and how to go about it.

Loans from the U.S. Small Business Administration (SBA loans) are often a great funding option for first-time buyers and self-funded searchers. If you need funding to buy a business, you'll need to create a solid business plan that includes a projection model. Read on to learn why you’ll need to include a projection model in your application if you’re applying for an SBA loan.

Your due diligence checklist will depend on the type of business you’re considering buying

Buying a business is perhaps the most important decision you'll ever make. Buying the right company could set you up for life, while a failure will likely leave you with significant financial issues.