In this lively episode of "SBA Today," Paul and Tonya explore the intricate landscape of mergers and acquisitions. They delve into the multifaceted aspects of buying and selling businesses. Their discussion provides insights from both borrower and lender perspectives, making the complex subject of mergers and acquisitions more approachable for their audience.

Focusing primarily on the lender’s viewpoint, the episode kicks off with a critical observation: "You're buying people, not just a business." This episode's highlights include the importance of due diligence, the pitfalls of neglecting human resources during acquisitions, and the time factor in closing deals. They emphasize how essential it is for borrowers to dig beyond surface-level numbers when evaluating business opportunities. Paul humorously remarks, "Due diligence is everything. Or I like to say, duh, of course it is," underscoring the seriousness of this often overlooked step.

Paul and Tonya also shed light on the lender perspective, sharing anecdotes about the challenges faced when a client's initial demeanor deteriorates after closing a loan. Their candid discussion touches on common obstacles such as hidden seller notes and the critical nature of aligning buyer skills with the business being acquired. Tonya aptly notes, "Know what your specialty is," reinforcing the theme of proper business-buyer fit.

Key Takeaways:

• When acquiring a business, remember that you are "buying people, not just a business," emphasizing the importance of the existing team.

• Thorough due diligence is crucial for a successful acquisition—don’t overlook potential pitfalls hidden beneath the surface.

• The way a client treats the lender at the beginning of the process is often the best behavior to expect.

• Time is a critical factor in closing deals; unnecessary delays can lead to lost opportunities.

• A buyer's skills should align with the business they intend to purchase to ensure a smoother transition and ongoing success.

Disclaimer: The views expressed on this show are our own and not necessarily the views of our employer. 

Are you a business owner or prospective business owner? Let’s see how we can help you.

If your business or perspective business is in:

Washington, Oregon, or Idaho contact: Paul Long at Gesa Credit Union [email protected]

Colorado, Texas, Missouri, Florida, Arizona, and Tennessee contact: Tonya Mazurek at Midwest Regional Bank [email protected]