The Deal Board Andy Cagnetta & Jessica Fialkovich

Welcome to another episode of The Deal Board Podcast! In today’s episode, Andy and Jessica are addressing one of the most popular topics in the world of business sales: valuation; and for that, they are discussing with two top industry experts in valuation. Darren Mize from GCF Valuations gives a great update on what is happening in the marketplace, and how they are approaching the COVID-19 crisis. David Fein, CEO of ValuSource, talks today about data, how it is compiled, its quality, and where it comes from. This is very useful information since we usually talk about variation multiples without knowing where all this information comes from.
 
Listings of the week:
- Sam Curcio (New York) is selling an Interior Design Architecture firm that also does repositioning work. Listed at $3.9 million. They did over $2.4 million in 2021 with an EBITDA of $1.1 million. It is an SBA prequalified deal.
- Bob Dunphy (New York) is selling a fabulous Mexican restaurant, SDE $350,000, and the asking price is $599,000.
 
Key takeaways:
[5:29] Darren Mize (GCF Valuations).
[6:21] Darren talks about what he is seeing in the business world these days.
[8:51] How important is the beginning of 2022 for Darren?
[11:18] How is Darren approaching the valuations?
[13:22] How does Darren’s valuation differ from business brokers’ valuations? What kind of adjustment does he usually have to make?
[16:41] Darren dives deep into the concept of data.
[19:43] How important is a location in trying to understand multiples?
[21:40] Darren shares advice to business owners who might think about selling and maximizing their value in the future.
[24:19] Deal of the week: Gary Goldwasser (Denver, Colorado) sold an electrical contractor company doing $5 million in revenue. The asking price was $1.75 million with real estate involved. The buyer purchased it through an SBA loan for $1.7 million.
[31:59] Listing of the week: Sam Curcio (New York) is selling an Interior Design Architecture firm that also does repositioning work. Listed at $3.9 million. They did over $2.4 million in 2021 with an EBITDA of $1.1 million. It is an SBA prequalified deal.
[33:36] David Fein (President and CEO of ValuSource)
[34:04] David talks about how buyers and sellers think about valuation.
[34:53] David shares what ValuSource does as the owner of the largest source of data for small businesses.
[36:23] What does the data collected by buyers and sellers tell us?
[40:01] David explains how to increase valuation by lowering risk.
[43:05] David shares how they acquire the data and from whom.
[46:26] David shares his advice for anyone wondering about the value of their business.
[49:23] Listing of the week: Bob Dunphy (New York) is selling a fabulous Mexican restaurant, SDE $350,000, and the asking price is $599,000.

Welcome to another episode of The Deal Board Podcast. This time, Andy and Jessica, your hosts, are welcoming two of the top SBA business lending experts, John Wahl and Lynn Ozer, who are explaining some of the basics, including what is SBA financing, how is it used, and what business financing in general looks like in our current environment.
 
Listing of the week: The team of Transworld Business Advisors from Oregon Central is sharing one amazing listing: An e-commerce business in the outdoor power sports industry that has been in business for over 20 years. It is making $5 million per year and $600,000 in EBITDA. The asking price is $3.5 million. Completely turn-key. Great scalable opportunity. Call Lonnie Woodruff at (541) 920-9026 or email lwoodruff@tworld.com.

Key takeaways:
[4:52] John Wahl (Live Oak Bank).
[5:18] What is business financing?
[7:36] How do you know if you are qualified for SBA financing?
[8:13] John describes some of the eligibility requirements for an SBA loan.
[9:43} John talks about the state of the union when it comes to business financing and acquisition.
[12:50] Jessica and John talk about the importance of having a specialist by your side when looking for SBA financing.
[14:51] John shares about Live Oak Bank and the kind of SBA financing they offer.
[15:14] John talks about the SBA 504 and 7(a) programs.
[16:23] How do buyers start engaging in this process? How do they know if they qualify for SBA financing?
[19:55] John expands on Live Oak and the programs they offer.
[21:55] Deal of the week: Aaron Fox (Boston) sold a pediatric office focused on mental health as a behavioral help facility. Twenty-eight therapists working, following all legal regulations. They were making $1 million in revenue, sold at $785,000.
[26:06] Lynn Ozer from MultiFunding explains what makes her an expert.
[28:40] Lynn talks about the current SBA programs available.
[30:35] What does it take to get an SBA loan?
[36:50] How much experience does a new buyer need?
[38:14] Lynn talks about the collateral.
[39:04] Andy and Lynn talk about the special circumstances that happened in these past couple of years and how they affected valuations.
[42:15] Why should someone choose a company like MultiFunding?
[46:27] Listing of the week: The team of Transworld Business Advisors from Oregon Central is sharing one amazing listing: An e-commerce business in the outdoor power sports industry that has been in business for over 20 years. It is making $5 million per year and $600,000 in EBITDA. The asking price is $3.5 million. Completely turn-key. Great scalable opportunity.