Take Five #153: From $5M to $10M: SBA max loan amount increase on the horizon (maybe), and more
Top five must-reads this week in the world of SMB acquisitions and operations
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Take Five #153: From $5M to $10M: SBA max loan amount increase on the horizon (maybe), and more
1. Form purchase agreements: a gift and a curse?
Unless the transaction is incredibly simple, a form purchase agreement is unlikely to capture the deal you want to do.
A form purchase agreement uses broad, generally applicable language. Broad language doesn’t always hurt—for example, you want the seller to give broad representations—but broad can also damage. A form purchase agreement won’t capture any nuances.
Forms are often a false economy.
If you sign a form purchase agreement you have two options. First, you can use the form as is. But for the reasons just stated, this may not capture the deal you want to do. Alternatively, you can hire a lawyer to amend the purchase agreement. Yet here, beware diminishing returns, as the supposed benefit—lower legal fees—will erode.
Forms constrain negotiations.
A purchase agreement should reflect the negotiated positions of the parties. But by agreeing to use a form purchase agreement, the parties are framing the basis for negotiations still to come. You lose negotiating leverage because conceptually you’ve agreed to the terms in advance.
Find SMB Transactions’ post here.
2. “How to use an earnout, major negotiation points, and why the earnout is a litigator’s best friend”
The Earnout is a portion of the purchase price that is not paid at closing, rather at a future date and contingent on a future occurrence. It can be simple one time payment upon an occurrence or complex based on milestones and multiple future dates.
A. When to use an Earnout. If there is an assumption that impacts the Target’s valuation, but it is unclear whether that assumption is true, consider an Earnout. E.g., Target’s financials are unstable, but Seller wants an offer based on last year’s financials that were 30% above average (e.g., EBITDA averages were 2022: $5m, 2023: $5m, 2024: $6.5m). Or there is a customer concentration issue, but Seller wants an offer based on all those customers staying on after closing. Another example (less common) could be a key employee staying on after closing or even Seller staying on for transition services.
Read the rest of Eli Albrecht’s post here.
3. 💲💲 From $5M to $10M: SBA max loan amount increase on the horizon (maybe)
4. The art of building revenue systems like production lines for consistent, measurable results
Become the Architect of Your Revenue Engine
Mastering Revenue Operations means moving beyond reactive fixes and embracing the role of a strategic program builder. It's about designing, implementing, and continuously optimizing the repeatable, scalable systems that form the backbone of a high-performing revenue engine.
By focusing on building programs like Lead-to-Opportunity management, Sales Enablement, Customer Onboarding, and robust Data & Reporting frameworks, RevOps transforms processes from inconsistent and inefficient to predictable and optimized. This requires a systematic approach, meticulous documentation, effective change management, and a relentless focus on measurement and iteration.
The challenges are real, but the rewards are immense.
A program-centric approach to RevOps doesn't just improve efficiency; it unlocks predictability, drives alignment, and ultimately lays the foundation for sustainable, scalable revenue growth.
Read the rest of Mastering Operations’ post here.
5. “Don’t Start a PE Fund; Start a Holding Company,” and other HoldCo Conference 2025 tidbits
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