Andy and JT welcome you to another episode of The Deal Board Podcast. This week, they talk about why business owners should common-size their financials and use percentages, benchmarks, and trends to better understand how their business is performing. They explain why buyers are not just looking at revenue, but also at margins, cost of goods sold, labor costs, operating expenses, and long-term profitability trends. Andy and JT discuss how common sizing can make financials easier to understand, how owners can compare their business to industry benchmarks, and why sellers should review their numbers regularly rather than waiting until they are ready to sell. They also explore how tools like QuickBooks, industry databases, and artificial intelligence can help owners spot problem areas, model improvements, and prepare stronger financial packages for buyers. Tune in to learn how clearer financials can build buyer confidence, support a stronger valuation, and help owners position their business for a better sale.

Listing of the Week:

JT Harp from Transworld Cincinnati presents a rare towing and recovery business in the Midwest with more than $3.5 million in top-tier tow trucks, heavy recovery rigs, and specialty equipment. The business has diverse revenue streams across light, medium, and heavy-duty towing, accident recovery, and truck and equipment leasing. With longstanding contracts, an experienced team, steady inbound leads from commercial and municipal sources, and strong asset value, this turnkey opportunity offers built-in stability and room for continued growth. For more information, contact JT Harp at [email protected] or call him at (513) 725-728

Deal of the Week:

Alpesh "AJ" Jayswal from Transworld St. Charles shares a deal where he helped a seller secure an additional $550,000 after negotiations stalled. The seller's husband passed away during negotiations, and the buyer reduced the offer from $2.8 million to $1.8 million because of concerns around the transition. After reviewing the financials and completing a valuation, AJ advised the seller not to accept the reduced offer and stepped in to help negotiate. After several calls with the international buyer, including working through a language barrier and an interpreter, AJ helped raise the final price to $2.35 million and earned a success fee based on the additional value created. For more information, contact Alpesh "AJ" Jayswal at [email protected] or call him at (630) 544-0611.

Key Takeaways From This Episode:

• [00:00] What common-sizing is and why it is important when selling a business.

• [01:30] Learn why percentages, benchmarks, and trends are essential.

• [03:58] Discover how inflation, tariffs, and labor costs can affect margins.

• [06:34] Listing of the Week: JT Harp presents a Midwest towing and recovery business with strong assets, diverse revenue, and turnkey growth potential.

• [08:51] Understand why buyers focus on margins, not just top-line revenue.

• [11:57] Find out why quarterly financial reviews help owners spot problems earlier.

• [14:02] Explore how AI tools can help owners identify pricing and margin opportunities.

• [15:05] Unpack how common sizing can build buyer confidence before a sale.

• [16:21] Deal of the Week: Alpesh "AJ" Jayswal helped a seller increase a stalled deal by $550,000 after stepping in to negotiate with an international buyer.

• [21:04] Andrew and JT's final takeaways.

Links Mentioned in Today's Episode:

The Deal Board Podcast

Subscribe to The Deal Board Podcast YouTube Channel

United Franchise Group

Transworld Business Advisors

Transworld on LinkedIn

Transworld on Facebook

Call us — (888) 719-9098

Email us [email protected]

Alpesh "AJ" Jayswal

JT Harp

QuickBooks Online | Intuit

#thedealboard #transworldbusinessadvisors #realestate #commercial

Quotes:

"The value of your business is what it's going to make in the future, to a buyer." — Andrew Cagnetta [0:01:04]

"Benchmarking is a really great way of looking at businesses." — Andrew Cagnetta [0:02:51]

"Common-sizing actually means making it simple for people to understand what's going on in a business." — Andrew Cagnetta [0:02:57]

"There are only two ways to be more profitable in any business, – drive sales [and] cut expenses." — JT Tatem [0:10:51]