Checklist of What Makes Someone a “Qualified Business Buyer” In the Eyes of a Seller:
The article outlines five core criteria sellers use to label a buyer as qualified: proof of cash or financing, relevant industry experience, a clear and realistic acquisition plan, cultural and strategic compatibility, and solid references or advisory support. Demonstrating ready capital and working‑capital capacity reassures sellers that the deal can close without financing hiccups. Experience in the same market and proven management skills lower the risk of post‑sale failure. Compatibility and credible endorsements further signal a buyer’s ability to preserve the business’s value and relationships.
The Triple-Layer Capital Stack: A Smarter Way to Buy a Business
Sebastian Amieva outlines a "Triple‑Layer" capital stack for acquiring a $5 million business without fronting the full price. The structure layers senior secured debt (≈51.6%), seller‑preferred equity or note (≈33.4%), and buyer common equity (≈15%). Co‑investors supply the equity slice, while...
The FOMO Flywheel: A Guide to Engineering FOMO in Your Fundraise
The article outlines a three‑phase “FOMO flywheel” for founders to engineer investor fear of missing out during a fundraise. It begins with a “Not Raising” tour, where founders build warm relationships months before asking for money. Next, a coordinated blitz...
Does Selling Make You Happy?
Recent surveys of founders who have sold their companies show that 78 % feel their lifestyle improved, stress levels fell 35 % (from 6.5 to 4.2), and overall life satisfaction rose 21 % (from 7.0 to 8.5). At the same time, 60 % report...
The Gravity of Capital: Understanding the Waterfall That Makes LBOs Possible
Leveraged buyouts rely on a strict payment waterfall that prioritizes operating expenses, senior debt, reserves, seller notes, and finally buyer equity. The hierarchy ensures banks’ capital is protected while the entrepreneur’s equity bears performance risk, driving deleveraging through cash‑flow allocations....
What Drove the Huge 2021 Boom?
The 2021 M&A market exploded, posting a 2.5‑times jump in deal volume. Analysts attribute the surge to a perfect storm: massive fiscal stimulus, historically low interest rates, depressed valuations, a frozen deal backlog, record‑high private‑equity dry powder, and strategic buyer...
Omens of the 2022 Bust. Clues for the Next One?
U.S. M&A activity exploded from roughly 4,200 deals in 2020 to a record 10,600 in 2021, a 2.5‑fold jump. By 2023 the volume had slumped 42%, reflecting a sharp reversal. Analysts link the collapse to runaway inflation, soaring Fed rates,...
The 7 Accounting Traps That Quietly Kill PE Deals (From a CPA in the Trenches)
Private equity transactions in the $5M‑$50M EBITDA range often collapse due to hidden accounting and tax issues rather than strategic flaws. A seasoned CPA outlines seven common traps—including overstated EBITDA add‑backs, mismatched working‑capital pegs, divergent quality‑of‑earnings reports, undisclosed sales‑tax nexus,...
How I Acquired 4 Businesses Without Wiring My Own Capital
In this episode, M&A expert Sebastian H. Amieva explains how he acquired four businesses without using his own cash by leveraging seller financing, senior debt, and equity partners. He emphasizes the importance of early preparation—defining clear acquisition criteria, cultivating lender...
Are M&A Advisers Worth It?
The episode examines whether hiring M&A advisors adds value for mid‑market business owners, citing a Harvard‑referenced study that finds sellers who use professional advisors achieve roughly a 25% higher valuation premium. It outlines how advisors boost deal outcomes by leveling...