Take Five #123: CPA explains how to use the tax code to save (a lot) on your SMB purchase, and more
Take Five #123: CPA explains how to use the tax code to save (a lot) on your SMB purchase, and more
Top five must-reads this week in the world of SMB acquisitions and operations
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Take Five #123: CPA explains how to use the tax code to save (a lot) on your SMB purchase, and more
1. Factory and manufacturing site assessment tool (details in the comments)
2. Some behind-the-deal psychology
3. “The Road to Bigger Deals: Converting from Self-Funded to Funded Search with a Diligence Fund”
A diligence fund is a specialized, single-deal investment fund designed to provide the capital needed to cover deal-specific expenses during the due diligence phase. As self-funded searchers scale up to pursue bigger deals, they must also scale up their financial strategies. This often involves converting to a funded search, where upon successful completion of due diligence, searchers can raise the acquisition equity investment from the same group of investors who participated in the diligence fund. These investors typically have rights to participate in the equity round, and the searcher may raise any gap capital from outside investors if needed. In our observation, almost every diligence fund where the deal was completed saw most of the capital being sourced from the diligence fund investors.
Find the rest of Richard Augustyn’s post here.
4. CPA explains how to use the tax code to save (a lot) on your SMB purchase
5. Podcast Interview: Micro-SaaS business buyer delves into the details of a niche acquisition market
Micro-SaaS business acquirer Kjael Skaalerud talks with SMB Deal Hunter host Helen Guo about why he chose the niche, how he sources deals, and discusses scaling strategies.
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.