Bruce Marks, MBA, CM&AA @sbabmarks Twitter profile

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Bruce Marks, MBA, CM&AA

2 years

Please check out our new Searchfund eBook This supports our understanding of this model and our commitment to lend in this space. #search #SMB #acquisitions

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Bruce Marks, MBA, CM&AA

@sbabmarks

1 year

WSS: Bruce, I have executed an LOI to purchase a business for $6,400,000 I believe I’m the right buyer BUT my personal net worth is less than $100,000 Can I get an SBA loan to acquire this business? So, what do you think ?

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Bruce Marks, MBA, CM&AA

@sbabmarks

2 years

Maybe I’m getting too sensitive in my old age. How about at least a call to say “Thank You” after we close your $5,000,000 loan Am I expecting too much 😳

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Bruce Marks, MBA, CM&AA

@sbabmarks

2 years

Bruce, I want to buy this business It’s throwing off $600,000 in SDE Can you provide the financing for this transaction? Well, Twitter world, do you think this will pencil out ?

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Bruce Marks, MBA, CM&AA

@sbabmarks

1 year

WSS: Bruce, I want to purchase this business for $4,000,000 I only have $75,000 in total liquidity. As a result, I will be bringing in several "Minority Owners" and raising equity What do I need from them? What information do they need to provide? well read here and find out

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Bruce Marks, MBA, CM&AA

@sbabmarks

2 years

Buyer pays $5,500,000 for this light manufacturing business financed with a $4,550,000 SBA Loan And then requests and gets another $5,000,000 SBA loan on the same business How did he do that? 🧵

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Bruce Marks, MBA, CM&AA

@sbabmarks

1 year

WSS: Bruce, I am looking to acquire this business for $3,700,000 I heard I might be able to do so without putting any money into the deal Is that true? YES ! Really:

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Bruce Marks, MBA, CM&AA

@sbabmarks

1 year

WSS: I just signed an LOI for $7,000,000 for a great company in a great industry I have very little money of my own but have investors that will back me I am under 30 but believe that I am the right operator and want to know if you will lend me the money to buy this business?

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Bruce Marks, MBA, CM&AA

@sbabmarks

2 years

We closed a $2,245,000 acquisition transaction: And shortly thereafter, the unimaginable happened: 🧵🥲

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Bruce Marks, MBA, CM&AA

@sbabmarks

1 year

WSS: I am searching for a business to buy and operate Given I have about $35,000 to invest, what size business can I buy? I understand the SBA requires 10% down so does that limit me to a very small business? One that is selling for $350,000 or less? Can you say Search fund?

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Bruce Marks, MBA, CM&AA

@sbabmarks

1 year

WSS: Bruce, I need your help in structuring this acquisition transaction. I would like to submit an LOI for $2,250,000 I want to also own 100% and do not want to bring in outside investors and dilute my ownership But, I don't have much liquid cash to invest Any ideas?

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Bruce Marks, MBA, CM&AA

@sbabmarks

2 years

So you get an SBA loan for $5,000,000 to buy a business What does that look like now 5 years later What, the business is now worth $50,000,000 Read here to find out how: 🧵

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Bruce Marks, MBA, CM&AA

@sbabmarks

2 years

I received some awesome birthday presents this year, including this shirt. My family even knows my saying!!

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Bruce Marks, MBA, CM&AA

@sbabmarks

1 month

WSS: Bruce, I am currently under LOI to buy a business that did $535,000 in EBITDA in 2022 and $978,000 in 2023. How does your bank look at this? Can we model this deal to see if it pencils? What should I be looking for? Well, read here 👇

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Bruce Marks, MBA, CM&AA

@sbabmarks

1 year

WSS: Bruce I want to buy this $2,500,000 business I want to discuss “working capital” with you Are you “buying” the working capital needed? Are you financing the working capital needed? Do you know how much you need? Ok, Let’s discuss here (***IMPORTANT THREAD***)

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Bruce Marks, MBA, CM&AA

@sbabmarks

9 months

NEW WSS: Bruce, I have executed an LOI for $3,200,000 to acquire this company. I really want to buy this as it checks all my boxes. Buy it? Based on the cash flow, it looks more like you're "stealing it" How the heck did you find such a deal? They're out there, obviously!

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Bruce Marks, MBA, CM&AA

@sbabmarks

2 years

Lost a $5.0 million dollar deal this week IN CLOSING Thought I would share why 😳

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Bruce Marks, MBA, CM&AA

@sbabmarks

2 years

So, here’s how a searcher took $60,000 of his own money and turned it into almost $4,000,000 in 3 years. #SMB #Search #acquisitions

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Bruce Marks, MBA, CM&AA

@sbabmarks

9 months

New WSS: My partner and I submitted an IOI on a business we had interest in buying. As a result, our broker and selling broker set up a meeting with the seller. It was our chance to "walk the business" and meet with the seller in person. Curious how it went? Well read here!

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Bruce Marks, MBA, CM&AA

@sbabmarks

11 months

WSS: Bruce, I have executed an LOI for $4,000,000 to purchase this business which does include the purchase of real estate as well. Given that the purchase price includes real estate, how does this change the deal, the amortization schedule, rate, terms and conditions? Well 🤔

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Bruce Marks, MBA, CM&AA

@sbabmarks

2 years

I received confirmation yesterday that multiples are coming down. Most business valuators are looking at around 3-4X and then adding or subtracting from there. When I am looking at my DCF model to value, I’m using 19% as a Discount Rate Opinions/thoughts?

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Bruce Marks, MBA, CM&AA

@sbabmarks

1 year

WSS: Bruce, I want to meet with you before we close our $4,250,000 loan that your bank approved I know you owned a management consulting firm for 13 years. I want to get your advice on a problem that I can foresee happening Oh no, what problem?

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Bruce Marks, MBA, CM&AA

@sbabmarks

1 year

WSS: Here's how to turn $30,000 to over $3,250,000 in 10 years. This is from a deal we recently closed. As a result, I wanted to share with those just how much wealth can be created my purchasing a successful small business. Obviously, this is why "search" is so popular!

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Bruce Marks, MBA, CM&AA

@sbabmarks

1 year

WSS: Bruce, I want to submit an LOI for $5,000,000 on this business Can I review this deal with you to see if this is something your bank might finance? Of course you can. BUT, tell me what you are basing this on and...

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Bruce Marks, MBA, CM&AA

@sbabmarks

2 years

2 Managers with very little capital, purchased this $3,200,00 business after trying to do so for a year and a half. Here’s how: 🧵

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Bruce Marks, MBA, CM&AA

@sbabmarks

2 years

A Broker brought this deal to market at the listing price of $5,995,000 A prospective borrower submitted his LOI, so the broker referred him my way Believe me, you will not want to make this same mistake 😮 🧵

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Bruce Marks, MBA, CM&AA

@sbabmarks

2 years

So Bruce, can you help me, no, because the noose is to tight around your neck. But keep looking or re-trade the deal to make it work! Hopefully this example helps clarify things for you and adds real value. If it does, please like, share and retweet. @sbabmarks

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Bruce Marks, MBA, CM&AA

@sbabmarks

2 years

I want to submit an LOI on a business in Colorado The deal does pencil out and my model works It is throwing off $650,000 in SDE Can you finance this acquisition for me? No, NEVER 😳 WSS:

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Bruce Marks, MBA, CM&AA

@sbabmarks

8 months

WSS: Bruce, I'm a searcher looking to buy a business. I don't have that much in the form of assets and I don't have much capital to invest I heard I may not be able to get SBA financing as a result because my PFS is weak Is that true? Here's the 5 most asked questions I get

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Bruce Marks, MBA, CM&AA

@sbabmarks

1 year

War Story Saturday (WSS): Bruce, I want to buy this business. I’m willing to pay a 3.5X Multiple. ⚠️ Is that on SDE or EBITDA? You know there’s a BIG Difference right? Especially if the Seller’s “Other Benefits" are large. Really! Can you tell me more:

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Bruce Marks, MBA, CM&AA

@sbabmarks

7 months

WSS: Bruce, I want to submit an LOI for $4,000,000 and would like you to help structure the transaction! How much equity must I personally inject? How much total equity do I need to bring to the table? Can the Seller Note act as equity? How much collateral do I need? Let's see

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Bruce Marks, MBA, CM&AA

@sbabmarks

1 year

WSS: We closed a $2,245,000 acquisition transaction: And shortly thereafter the unimaginable happened 🧵😪 (warning - very sad story) I made a conscious decision this week to repost a thread from a year ago.

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Bruce Marks, MBA, CM&AA

@sbabmarks

2 years

Bruce, can you do this deal? $900,000 in EBITDA and a $5,000,000 purchase price at 80% financing? When you add your salary, Seller Note repayment, added deal costs and sensitized interest rate. Today, it’s not even close. NO, there simply is not enough FCF.

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Bruce Marks, MBA, CM&AA

@sbabmarks

2 years

We closed a $4,000,000 deal for 2 partners 6 months later the loan was defaulting Why? For reasons you may not be thinking of: 🧵

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Bruce Marks, MBA, CM&AA

@sbabmarks

26 days

WSS: Bruce, I have built a financial model and want to go over it with you. This is a business I would like to submit an LOI on that suits my background but there are factors I am concerned about and need your expertise This was a fantastic dialogue and I want to share it! 👇

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Bruce Marks, MBA, CM&AA

@sbabmarks

2 months

I know you want to submit an LOI. You know I preach about working capital being included So, I thought I would share some general thoughts around that subject. So, please ask/consider this:

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Bruce Marks, MBA, CM&AA

@sbabmarks

2 years

Here’s how a deal went from an LOI to bust from one accounting entry. Upon review of the tax returns submitted there was an entry for $325,000, line 5 on the 1120-S, Other Income.

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Bruce Marks, MBA, CM&AA

@sbabmarks

3 months

WSS: Bruce, I’m thrilled. My LOI has been accepted at the purchase price of $4,500,000. I’ve been searching for a while, and I’m eager to get started with you immediately. Can you help me get this transaction done? What did you say the EBITDA was 😳

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Bruce Marks, MBA, CM&AA

@sbabmarks

12 days

WSS: Bruce, we are ready to go through your model for a requested Term Sheet. We would like to submit an LOI for $4,000,000 We have most all the information you requested. We are eager to move quickly and have spent 6 weeks digging into all aspects of this target Surprise 😳

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Bruce Marks, MBA, CM&AA

@sbabmarks

2 years

A Searcher from here on Twitter just lost a large transaction during Due Diligence I wanted to share this story and provide some real insight If you are serious about acquiring an SMB in 2023 This is one WSS you don’t want to skip! 🧵

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Bruce Marks, MBA, CM&AA

@sbabmarks

1 year

I normally don’t talk about me, I just try to add value for those that follow. I made the Wall Street Journal today, so just a little proud!

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Bruce Marks, MBA, CM&AA

@sbabmarks

2 years

I am so pleased to share that in 2022, my team approved 22 loans this year totaling almost $90,000,000 Not all deals closed as you know because War Story Saturday shared these with you. I report this to you all because it shows and supports our commitment to the SMB community

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Bruce Marks, MBA, CM&AA

@sbabmarks

2 years

I have a signed LOI for $4,500,000 but here’s the rub The business being sold has very few clients and 4 of them make up 80% of the revenue Talk about “concentration risk” Can I still get financing? Well read here to find out: 🧵

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Bruce Marks, MBA, CM&AA

@sbabmarks

2 years

So this is me, just being real. I hope you can take 2 minutes to read this. First and foremost, those thank you messages from me to you thanking you for your follow are not automated (I don’t even know how to do that) I actually look at your profile!

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Bruce Marks, MBA, CM&AA

@sbabmarks

2 years

Bruce, I be am willing to inject $150,000 more in equity! Does that make you feel more comfortable as a Lender Actually less comfortable 😳 Are you serious ??

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Bruce Marks, MBA, CM&AA

@sbabmarks

1 year

WSS: Bruce, I have signed an LOI to acquire a business for $3,200,000. I live in the Midwest and the business is located in the Southeast. I don’t plan to move permanently, but will be there several days a month. Will this create a concern for you and your bank?

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Bruce Marks, MBA, CM&AA

@sbabmarks

5 months

WSS: Bruce, I want to submit an LOI Ok, so you have done a deep dive on the company, have their last 3 years tax returns and of course at least 12 months of financial statements so you can see what the working capital needs of the business are, correct? Well 🙄

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Bruce Marks, MBA, CM&AA

@sbabmarks

1 year

As always, I hope you have found value in this tweet thread and if so, please like, share, and retweet, so others may find value as well. Making an impact and getting your deal to the closing table is what it’s all about. @sbabmarks

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Bruce Marks, MBA, CM&AA

@sbabmarks

1 year

We closed a large SBA loan for a very prominent Searcher here on Twitter today. I’m very excited for this person and I’m flattered that they choose me to do their deal. 3 more that will close this month as well! This platform is like none other! Impactful lending for sure 😀

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Bruce Marks, MBA, CM&AA

@sbabmarks

2 years

My wife and I went to Capial Grille last night to celebrate our 41st wedding anniversary. We had reservations as did every one else. The place was 100% packed, not a table to be had. How’s the economy doing??

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Bruce Marks, MBA, CM&AA

@sbabmarks

2 years

Two managers came together to buy this $6,500,000 business they were essentially operating. We worked together for almost 14 months! Not only was our strategy to buy the business successful, but the buyers saved literally $250,000 off the purchase price. Curious how 🤔 🧵

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Bruce Marks, MBA, CM&AA

@sbabmarks

2 years

Bruce, I have a signed LOI for $3,500,000 to acquire the business that I am currently managing The financials are in a complete disarray however and I’m not sure they will show Debt Service Coverage What can I do to get this deal to the closing table? Read here/WSS:

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Bruce Marks, MBA, CM&AA

@sbabmarks

1 year

WSS: Bruce, I have an executed LOI to purchase a small manufacturing business for $3,385,000 I want to use some money from my 401(k) plan to fund the equity injection or 10% required. I heard that one can do this, correct? Yes, but there are some important factors to consider!

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Bruce Marks, MBA, CM&AA

@sbabmarks

7 months

WSS: The first Letter in SBA stands for Small. When I made my very first SBA Loan years ago, the maximum loan amount was $500,000. Today it is $5,000,000. When I look at my 3 most recent transactions, the purchase price of each has exceeded $12,000,000. Are these small?

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Bruce Marks, MBA, CM&AA

@sbabmarks

1 year

WSS: Bruce, I’m interested in buying this business for $3,500,000 Sales were 30% higher in 2022 vs. 2021 How does a lender look at this? Can I get SBA Financing for a high growth company? Here's what you need to know:

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Bruce Marks, MBA, CM&AA

@sbabmarks

8 months

WSS: I have an executed LOI for $2,500,000. I am speaking with a few Lenders BUT have several requirements to get this deal over the goal line. These are: I want to invest only 2.5% I need to close in 60 days Working capital will exceed my equity injection Interested ?

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Bruce Marks, MBA, CM&AA

@sbabmarks

11 months

WSS: I would like to submit an LOI for this business. Before doing so, I wanted to make sure the deal pencils so I don't hear "Congratulations, you have structured a deal that doesn't work" This deals pretty much checks all my boxes The purchase price is $1,700,000 Let's see

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Bruce Marks, MBA, CM&AA

@sbabmarks

1 year

The point of this week's WSS is (and has been) is don't let the equity alone stop you. If needed, bring in investors. If not, be creative and work with your Lender to figure out a strategy that works for you Please like and share if you found value in this thread @sbabmarks

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Bruce Marks, MBA, CM&AA

@sbabmarks

1 year

NEWSFLASH … Paying a 5X Multiple with a 10% equity check and a 10% Seller Note and requesting an 80% SBA loan today, is not going to pencil out! AND, please don’t tell me you are willing to take a salary of $50,000 to do so. SMBTwitter world, please!

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Bruce Marks, MBA, CM&AA

@sbabmarks

4 months

We are closing our largest ever Pari Passu Transaction this morning. Who would have thought that a deal over $12,000,000 was possible with SBA Financing So thrilled for my Searcher. I guess I will call and say thank you for choosing me 😉

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Bruce Marks, MBA, CM&AA

@sbabmarks

2 years

We issued a Commitment Letter 3 weeks ago for $6,100,000 and the borrower called 3 days ago to tell me the deals off Are you kidding me, not again! If you are a Searcher/Buyer, you will want to spot this red flag quick: 🧵

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Bruce Marks, MBA, CM&AA

@sbabmarks

2 years

87% don’t know this about SBA But you will if you read this:

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Bruce Marks, MBA, CM&AA

@sbabmarks

1 year

WSS: Bruce, I have already worked out the terms and conditions on this $4,200,000 acquisition of a Web Design and SEO Agency One of the conditions is a 3-year Non Compete Clause I'm fine with this, but wanted to make sure the Bank was as well What say you SMBTwitter ?

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Bruce Marks, MBA, CM&AA

@sbabmarks

5 months

This is what I observed this week sitting with about 25 Searchers: * the PG on an SBA loan is scary * the PG will actually kill dreams * some are ok with a PG on a small scale * if one does have assets to protect, what are the strategies to do so

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Bruce Marks, MBA, CM&AA

@sbabmarks

2 years

I share this story because it’s real and wealth has certainly been created. As I have mentioned in prior tweets, it’s about lending to good people, buying good businesses with good strong cash flow. As I like to say, the 3 G’s of a Good Deal! @sbabmarks

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Bruce Marks, MBA, CM&AA

@sbabmarks

1 year

WSS: Bruce, I want to talk with you about several issues I am facing as a Searcher. When dealing with Brokers, I am getting pushback They want me to sign an NDA and complete personal financial information What are they actually looking for? Can you help? **Important Read**

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Bruce Marks, MBA, CM&AA

@sbabmarks

6 months

I am posting this at the urging of @SMB_Attorney and @SBA_Matthias I have had 11 acquisition transactions approved in the last two months for over $60,000,000 for Searchers. They both said the “SMB Community” will want to know!

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Bruce Marks, MBA, CM&AA

@sbabmarks

4 months

WSS: A few weeks back, the largest transaction I have personally worked on, a $13,000,000 purchase price, fell apart AFTER the loan request was approved and the deal was in the closing process. After speaking with the client this week, I thought I would share the pain.

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Bruce Marks, MBA, CM&AA

@sbabmarks

1 year

I just had a great call with a client. We closed his $5,000,000 deal last year He called to let me know how fantastic things are going and how he and his wife have grown the business. I asked him if he could share with me a little about the transition. Here’s what he said:

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Bruce Marks, MBA, CM&AA

@sbabmarks

9 months

WSS: Bruce, I have executed an LOI for $4,150,000. I want to see if you can get this deal to the closing table. I am basing the purchase price on TTM of $1,000,000 (Trailing Twelve Months) Is this going to be a problem? IT MIGHT VERY WELL BE 😳 And here's why!!

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Bruce Marks, MBA, CM&AA

@sbabmarks

1 year

Just as a reminder, or in case you somehow missed this: 1. A seller may not roll any equity in an SBA loan. The acquisition must be for 100% of the small business concern. 2. A seller can stay on for no more than 12 months after the acquisition as a consultant. These are SBA

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Bruce Marks, MBA, CM&AA

@sbabmarks

1 year

Welcome to the “Searchfund Model”. I informed him the SBA is a “cash flow lender” and the transaction checked all the boxes. We had the 3 G’s well covered. Lending to Good people, buying a Good business with Good strong cash flow! So we proceeded forward.

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Bruce Marks, MBA, CM&AA

@sbabmarks

1 year

WSS: Bruce, I have received your banks commitment letter for my $4,100,000 acquisition transaction. Can you set the expectations around timing and what is needed to get this deal to the closing table? Of course! Here's what you need to know about closing an SBA Loan:

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Bruce Marks, MBA, CM&AA

@sbabmarks

2 years

Want to make your LOI extremely meaningful? Here’s how:

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Bruce Marks, MBA, CM&AA

@sbabmarks

8 months

I just emailed a $4,300,000 commitment letter to a Searcher who contact me 11 days ago. We went from Term Sheet to approval that quickly. Speed and certainty to close was what he asked for and what we delivered! Yes, it matters who is your SBA Lender!

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Bruce Marks, MBA, CM&AA

@sbabmarks

2 years

I have only been on Twitter for 3 months. And I may only have 1,400 followers but I can’t believe the amount of business this platform has generated. I already have my first deal in closing on a $3,750,000 acquisition for a Searcher who reached out to me from this platform

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Bruce Marks, MBA, CM&AA

@sbabmarks

11 months

WSS: Bruce, Can we talk about the elements of an LOI and some of the language that is included? I want to better understand exactly what needs to be in there so it is a meaningful LOI. Can you provide a draft for me as well? Ok, let’s dive in 🤿

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Bruce Marks, MBA, CM&AA

@sbabmarks

2 years

Bruce, I was referred by a friend who you helped 4 years ago get a loan. It’s a really good transaction, but not sure it can actually get done. Why do you say that? Because several lenders have already passed on this $7,000,000 deal. Well, let’s see if I can change that !

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Bruce Marks, MBA, CM&AA

@sbabmarks

2 years

Buying a SMB Do I need a business plan and projections? If you are using an SBA loan to finance it:

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Bruce Marks, MBA, CM&AA

@sbabmarks

2 years

Bruce, I want to book some time to chat with you about an acquisition I am considering for $2,200,000 I am going to send you the CIM in advance I'm looking forward to hearing how you will look at this deal and if you can get it done Interesting WSS on the deals I see 🧵

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Bruce Marks, MBA, CM&AA

@sbabmarks

2 years

This $2,600,000 deal blew up, for reasons that were a total surprise to both the buyer and the seller How did that happen 🤔 And then the unexpected occurred: 🧵

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Bruce Marks, MBA, CM&AA

@sbabmarks

2 years

SO, last night I delivered a $3,976,000 Commitment Letter to a Self Funded Searcher! I did so with a BIG THANK YOU and thanking him for choosing me and trusting me to get his transaction done ✅ I appreciate all the feedback yesterday and providing a “different view” Thank You

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Bruce Marks, MBA, CM&AA

@sbabmarks

2 years

Had a good zoom call with a Searcher yesterday who has a signed LOI He had agreed to a 4X multiple on SDE He is injecting 20% as equity. Seller has agreed to a 10 year note with a balloon in year 5. Interest only for the first 2 years

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Bruce Marks, MBA, CM&AA

@sbabmarks

1 year

Today, agreeing to pay 5X is “not” going to pencil UNLESS you are injecting a significant amount of equity or the Seller has agreed to hold a substantial Seller Note! Please take note. BTW, getting lots of deals done, but under 4X 😀

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Bruce Marks, MBA, CM&AA

@sbabmarks

1 year

WSS: Bruce, I want to get your take on this $2,500,000 business for sale. The Seller also wants $500,000 for the inventory I personally have $325,000 I can invest Is this the type of deal you can get to the closing table? Would YOU do this deal?

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Bruce Marks, MBA, CM&AA

@sbabmarks

2 years

War Story Saturday: Bruce, I have an executed LOI that I would like to discuss with you. Before choosing my lending partner, I would like to learn more about you. So, please share your background with me. Of course, I am glad that you asked 😊 Here's my story

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Bruce Marks, MBA, CM&AA

@sbabmarks

1 year

WSS: I have a deal under LOI for $3,650,000. I love this business and the business model and want to get your take. It had significant growth over the last few years and threw off $700,000 in SDE in 2021. June 2022 sales were on track but SDE was slightly less. Concerns 😳

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Bruce Marks, MBA, CM&AA

@sbabmarks

1 year

WSS: I lost a $7,850,000 Pari Passu deal in closing after spending 6 months to get it there. This was an acquisition of a well established existing franchise. I thought I would share why and share some important factors to consider when looking to buy a franchise concept.

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Bruce Marks, MBA, CM&AA

@sbabmarks

3 months

WSS: Bruce, I am trying to model my deal to see if it pencils. There are a couple of items I need clarity on. Can you please help me to understand how the bank looks at these. I get this all the time, so I thought I would share.

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Bruce Marks, MBA, CM&AA

@sbabmarks

3 months

If you’re thinking of submitting an LOI based on a 4.5X to 5X Multiple Don’t think that your deal will pencil at 10% Seller Note AND 5% Equity. It won’t!

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Bruce Marks, MBA, CM&AA

@sbabmarks

6 months

WSS: Bruce, I have an LOI executed for $4,900,000 and need your help. I was going to reach out earlier but I got blindsided by the rate from another Lender. Now I am in jeopardy of losing my deal because they could not deliver in time. Can you help?

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Bruce Marks, MBA, CM&AA

@sbabmarks

2 years

🔹 if there is a transition plan because the seller is needed in the transaction, think about setting up an escrow account which will tie his performance to receipt of some type of renumeration 🔹 If the business in any way shape or form looks like a “me” business be very careful

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Bruce Marks, MBA, CM&AA

@sbabmarks

3 months

On the way to Disney yesterday I had 2 Searcher calls. Evidently my granddaughter was listening in. this morning she said to me, Gramps, I didn’t know a person could buy a $3 million dollar business with so little money down. A future Searcher for sure!

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Bruce Marks, MBA, CM&AA

@sbabmarks

2 years

90% of transactions have a SELLER NOTE This 🧵might just protect you:

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Bruce Marks, MBA, CM&AA

@sbabmarks

6 months

WSS: Question - Does it matter if it is a stock sale or asset sale? Bruce, can we talk about asset allocation in a SMB Acquisition Transaction? What might be the tax consequences and should I be allocating for this? I'm glad you are considering these issues. Ready, set, go!

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Bruce Marks, MBA, CM&AA

@sbabmarks

2 months

WSS: So you set up a time with me to discuss a transaction that you have an interest in. You want to submit an LOI and get some Lender feedback before doing so. You have some general questions. Obviously, I will as well Questions such as?

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Bruce Marks, MBA, CM&AA

@sbabmarks

2 years

I have an LOI executed for $3,500,000 to buy the company that I work for This should make for an easy transition, correct? This will take away the “related management experience” issue, right ? Come on now: A real lesson to be learned here: 🧵

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Bruce Marks, MBA, CM&AA

@sbabmarks

1 year

I informed him that our bank (again, each bank is different) that we would require him to inject “some equity” into the deal. He said he felt comfortable investing $50,000. Imagine this folks, buying a business for $6,400,000 throwing off $1,500,000 in EBITDA for only $50,000

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Bruce Marks, MBA, CM&AA

@sbabmarks

2 years

Today’s “War Story Saturday” has a different spin This story, although sad, will give you some insight into Seller emotions when exiting a business Meeting this Seller left a huge impression on me. When you read this, it may just do the same for you:🥲

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Bruce Marks, MBA, CM&AA

@sbabmarks

2 years

So some lessons to be learned here. I will continue to share “war” stories so value can derived!!

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