Q: What is an Exclusivity (no-shop) LOI

An exclusivity (no-shop) requirement is a provision in a contract or agreement that prohibits one party from engaging in discussions, negotiations, or transactions with other parties for a specified period of time. It ensures that the party benefiting from exclusivity has the exclusive right or opportunity to pursue a particular business transaction without competition or interference. In the context of a business acquisition or merger, an exclusivity requirement may be included in a letter of intent (LOI) or a term sheet to provide the prospective buyer with a designated period to conduct due diligence, negotiate the terms of the transaction, [...]

Categories: |

Q: What is EBITDA

EBITDA stands for "Earnings Before Interest, Taxes, Depreciation, and Amortization." It is a financial metric used to assess a company's operating performance and profitability. EBITDA represents the company's earnings or profits before deducting interest expenses, income taxes, depreciation, and amortization expenses. EBITDA provides a clearer picture of a company's operational profitability by excluding non-operating factors such as interest and tax expenses, as well as accounting practices like depreciation and amortization, which can vary between companies based on their capital structure and accounting methods. EBITDA is often used as a measure of a company's cash generation potential and its ability to [...]

Categories: , |

Q: What is TTM

TTM stands for "Trailing Twelve Months." It is a financial metric used to measure a company's performance over the past twelve consecutive months. TTM data includes the most recent four quarters of financial results, providing a snapshot of the company's performance during that period. It allows for a more up-to-date and comprehensive analysis of a company's financial health and trends compared to annual or quarterly reports alone. TTM figures are commonly used in financial analysis, valuation, and comparisons between companies.

Categories: , , |

Q: What is SDE

Seller's Discretionary Earnings (SDE) is a financial metric used to evaluate the earnings potential of a business. It represents the total cash flow generated by a business, taking into account the owner's salary, perks, and discretionary expenses that may not be essential for the business's ongoing operations. SDE provides a more comprehensive picture of the business's profitability by factoring in the owner's financial benefits that might not be reflected in traditional financial statements. It is commonly used in business valuation and acquisition processes to estimate the income that a new owner could potentially derive from the business.

Categories: |

Q: How long does it take to complete a valuation on my business?

Our goal is to have the valuation completed in less than 24 hours once we receive all the requested information.  Sometimes the valuation process can take longer than 24 hours if additional industry research needs to be completed or the business has a valuation above $5MM +.  Our goal is to provide the most accurate valuation possible on your business.

Categories: , |

Q: Why doesn’t Acquisitions Direct accept low priced listings?

We pride ourselves on providing our clients with a high-quality, custom sales process.  A substantial amount of work goes into the sales presentation and marketing plan to sell a business.  This type of service is typically not cost effective for businesses priced under $250,000, and our buyers are generally looking for businesses that will have annual profits higher than those that would fall under that threshold.

Categories: , |

Q: Why is your close rate so high?

We have over 2 decades of M&A experience in the industry.  We have sold hundreds of eCommerce, SaaS and Amazon FBA brands.  We take a boutique approach and only focus on 12-18 high quality listings at a time so that each business owner receives the benefits from our experience and attention.

Categories: |

Q: Do you offer referral fees?

Yes please contact us and we will be happy to discuss our referral program with you. This program is subject to the execution of a referral confirmation agreement between the referring party and Acquisitions Direct. Participation in this program has certain restrictions which will be discussed with the referring party. All referrals that list with Acquisitions Direct are sold by Acquisitions Direct receive a referral fee at time of closing.

Categories: |
Go to Top