Why Business Brokers Need To Get Their Listings SBA Pre-Qualified

There are a lot of banks and lenders that will put together a piece of paper on their letterhead and say a business is prequalified with a certain amount down with a rate and term, but usually not much more than that. Many of the prequals we see on a daily basis are just not detailed and I really wonder sometimes if they have even looked at the financials. What they provide is just plain garbage at times.

Ivanhoe is nothing like that. We will give you a very detailed analysis of the business as it pertains to debt service coverage ratio for all tax years and the interim period so you can see the trends of the business. You will be able to distinguish exactly how much the business can service according to current and past cashflows.

We also run through your recast and make sure that the addbacks you have listed will be able to be utilized. Some addbacks might not be allowed for cashflow purposes, so it is better to know now than down the road. Especially if you are counting on these addbacks for your current valuation. That could be a big problem down the road that we avoid up-front.

We put this all in a very detailed cashflow and valuation analysis. This will give you 6 different valuation methods which are all the same ones that the major third-party valuation companies use. This gives you, your seller, and any potential buyers one of the most through analysis in the industry as it pertains to debt and cash-flow.

We will then put together our “prequal” which will be a structure that we know we can CLOSE! There will also be details on closing costs and all applicable fees, etc. Not only will it be very specific, but most importantly, backed by a very thorough underwriting of the financials. The last thing anyone wants is a surprise! Surprises are only good for birthdays.

This is all FREE! We do not charge a dime for any of this. We know that a certain percentage of the deals we analyze and prequal will become loans that we originate and some won’t. We are ok with this. If this analysis helps you sell a business then it was worth it. We want to be your trusted advisor and not just a lender. We will do plenty of business together if we keep working together.