Acquisitions Anonymous - #1 for business buying, selling and operating cover image

Can we make an SBA loan pencil on a 5% margin business? - Acquisitions Anonymous 195

Acquisitions Anonymous - #1 for business buying, selling and operating

00:00

The Risks of a Thin Margin Business

The deal has a 5% EBITDA margin on 13 million of sales. The problem though is great. If you have the cash flow to keep paying where it doesn't really matter where it comes from, the bank's going to accept the payment every month. So yeah, I think a skinny margin business is kind of scary to put debt on for sure.

Play episode from 25:52
Transcript

The AI-powered Podcast Player

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!
App store bannerPlay store banner
Get the app