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Hey Reader, I hope you're enjoying the new YouTube show!

(4.0 minute read)

1. Failing is okay.
2. Dig Deeper: Equipment heavy business due diligence tip.
3. This issue's sponsor-Rapid Fire Listing Review Package.
4. ​Prescription for Profit? Would you buy this medical diagnostic company?
5. Pop Quiz- How many lab tests?
6. More ways to connect.

​Prescription For Profit?​

TL;DR (for the highlight lovers)

• Watch the Full Episode: Cash or Crash!?! Episode #5​
• 20% profit margins
• SBA 7(a) loan payments are ADJUSTABLE
• A 5.06X SDE multiple
• 2 Locations
• Final verdict: Cash or Crash?
• FULL ARTICLE BELOW

💬What She Said💬

“I had to learn to be fearless. I came to understand that if I tried something and failed, it would be okay, because I could bounce back and try again.”

🪏Dig Deeper🪏

(Due Diligence Tip)

Are you buying an Equipment Heavy Business?

Check the Repairs & Maintenance account…

Even routine upkeep is expensive.

Are they keeping up?

This newsletter is brought to you by:

Get CPA eyes on your target business listing

— with red flags identified–

BEFORE the $10,000+ price tag of full due diligence.

Get the details--Rapid Fire Listing Review Package​

​Prescription for Profit​

SBA Loan Pit Stop

(a snippet from Episode #5, minute 4:56)

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This is probably a great time for a quick SBA loan pit stop. Did you know that your SBA loan will NOT be a fixed rate loan?

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That’s right.

Your rate will adjust every quarter, based on the Wall Street Journal Prime Rate.

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The SBA doesn’t actually set your interest rate, because they aren’t your lender. Your bank will do that based on your credit profile, your relevant experience, and other such factors. What the SBA does stipulate is the highest rate that your lender is allowed to charge for each type of loan.

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The lesson here is to know that your SBA loan is variable, and when doing your business review, you may want to calculate your loan payments at different interest rates and see how things measure up under various loan scenarios.

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In this Rapid Fire Listing Review we used an interest rate of 9%.

That gave us the loan payment of $577,000.

And loan coverage of 1.30

All good.

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But, if our rate were just one point higher, say 10%.

The payments would jump to $602,604. (Just like your blood pressure, right?)

At this point, the loan coverage would be 1.24.

Just below our minimum standard of what makes up a good business listing.

Buyer Beware!

Check out the full episode here and tell me if you would buy this $3.8 million 2-location medical diagnostic company.

🧐Pop Quiz🧐

How many medical tests are run by US laboratories every year?

(Reply to this email with your answer. First closest answer gets a mention in the next issue:-)

Last Issue's winner: Sandi Adam

Margaret Rudkin founded Pepperidge Farm cookies after discovering Belgian chocolate biscuits while traveling in Europe in 1956.

More ways to connect:

1. Respond to this email. I read them all:-)

2. Connect with me and other buyers in the FB group.

3. Other interesting items: Here​

🏍🏍🏍🏍🏍🏍🏍

Thanks so much for reading... Peace Out!✌🏼

Della Kirkman, CPA
dellak@shift-n-gears.com

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