February 27, 2024

Take Five #095: Stock Sale vs. Asset Sale, how asset allocation impacts an SMB transaction, and more

Take Five #095: Stock Sale vs. Asset Sale, how asset allocation impacts an SMB transaction, and more

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Take Five #095: Stock Sale vs. Asset Sale, how asset allocation impacts an SMB transaction, and more

1. How task batching works (and how it can improve your search strategy)

How do I define batching? Very simply, it is the practice of proactively grouping tasks or activities into containers (or batches) that you tackle at specific periods throughout the week. This concept includes everything in your life, from sleeping to emailing business owners. But hear me out – I am not encouraging everyone to become the next David Goggins, but instead, to be more mindful of what you actually do daily.

It's the bedrock of your search strategy, offering a sense of direction during times of uncertainty.

Find the rest of Maverick’s post here.

2. Detailed post on future cash flow analysis and the Return on Invested Capital (ROIC) metric

3. Yale Case Study: Exploring a CEO’s Leadership Role in a Search Fund–Acquired Small Business

Leadership is what differentiates a transactional deal from an excellent operating entity. We believe that if more CEOs embraced and developed leadership, they would actually have an opportunity for even greater wealth accumulation for themselves and their shareholders. Furthermore, well-led companies hum along and have a smoothness to them that under-led businesses lack. The presence or absence of leadership in a small business can be felt immediately and palpably. Leadership fills a sustaining role in guiding a harmonized organization forward and creating value for all constituents (customers, team members, shareholders).

Read Yale’s full case study here.

4. 5 non-SBA ways to fund a business acquisition

Seller financing, also known as vendor take-back loan (VTB), is a financing arrangement where the seller of a business provides financing to the buyer instead of the buyer obtaining funding from a financial institution. One of the main benefits of seller financing is that it can provide a bridge between buyers and sellers when there’s a disagreement on purchase price. Sellers can finance some of the difference between the two parties, where they get repaid if the company performs according to the seller’s expectations.

Read Private Market Labs’ detailed list of funding alternatives here.

5. Stock Sale vs. Asset Sale and how asset allocation impacts an SMB transaction

Loved what you read? Subscribe to Take Five to get our top quick reads every week from the team at Kumo. Kumo aggregates thousands of sources into one easy-to-use platform so that you can spend less time sourcing, and more time closing deals.