Take Five #167: How to calculate how much SBA debt you can afford on a deal, and more
Top five must-reads this week in the world of SMB acquisitions and operations
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Take Five #167: How to calculate how much SBA debt you can afford on a deal, and more
1. How to calculate how much SBA debt you can afford on a deal
2. “The 50 most important things you need to know about buying a business”
3. Don’t overpay for a seasonal SMB: Time series tools for revenue modeling spot trends, predict future performance
Seasonal revenue modeling is critical when buying a small or medium-sized business (SMB). Ignoring seasonal patterns can lead to overvalued deals, cash flow issues, and poor financial planning. Here's what you need to know:
Why It Matters: Seasonal trends impact financial projections, valuations, and operational planning.
How It Works: Analyze historical sales data to identify predictable revenue patterns.
Steps to Model Seasonality:
Collect and clean at least three years of revenue data.
Use tools like time series decomposition, seasonal indices, and autocorrelation analysis.
Segment data by product, customer type, or region for deeper insights.
Financial Adjustments: Build seasonality into forecasts, adjust working capital, and align financing with revenue cycles.
Technology's Role: AI and analytics tools simplify identifying trends and improving forecasts.
4. Well-informed individual buyers crush impersonal PE spam in sellers' inboxes
5. Hot take: A truer ETA tweet has never been tweeted (classic corporate escape arc, all in one post)
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.