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What Do BBB (Business Buyers Buy)?

By Carl Grimes, CBI
Chairman
CBI Team
 
“Show me the money” is a catch phrase from a popular movie.
 
Guess what?
 
It’s still a catch phrase in business sales…show me the money!
 
That’s what business buyers want to buy, money.
 
Cash…not assets.
 
The first thing Main Street (businesses that sell for less than $1 million) business buyers must do is be able to make a living from the business they buy. That’s why most businesses that have $100,000 annual SDE (Seller Discretionary Earnings) are so attractive to buyers. If the business makes $100,000 then the buyer can see a way to own the business, make a living and pay for it out of the cash flow in a reasonable period of time, usually 5 to 10 years.
 
Cash flow is king to buyers.
 
One of the issues we deal with is helping business sellers find and present the true SDE of their businesses.
We’re pros at going through financial documents and identifying discretionary items that can be added back to present the real, true, accurate cash flow (SDE) to buyers.
 
Assets aren’t as important except to third-party lenders such as banks.
 
So, if you want to sell your business, remember this phrase, “Show me the money!”
 
Contact us at 877-582-5200 or confidential@cbiteam.com today and we’ll help you find the money to show the buyers.