Helping You Buy the Right Business at a Fair Price
Independent Advice for Small Business Buyers
Buying an established, cash-flow-generating business can be an excellent opportunity, but knowing whether it is truly worth the asking price requires careful analysis.
SMEConsultant provides independent consulting for small business buyers, helping you understand the financial performance, cash flow, valuation and potential risks of a business before you make a major financial commitment.
Rather than relying solely on information presented by the seller or business broker, you can have an experienced consultant review the opportunity from the buyer’s perspective.
The goal of SMEConsultant is simple: to give you the independent information and insight you need to make a more informed decision and buy the right business at a fair price.
About SMEConsultant
Experience and Independent Insight for Business Buyers
SMEConsultant was founded by David Walker to provide practical, independent consulting services for people considering the purchase of a small or medium-sized business.
David began his career as a graduate trainee with Dunlop Holdings in the United Kingdom, which led to a career in corporate planning. He later completed a sponsored MBA at London Business School before working with a firm of accountants advising on corporate mergers and acquisitions.
His background in business planning, finance and acquisitions provides valuable experience when reviewing the information behind a potential business purchase.
Today, David operates SMEConsultant from Victoria, British Columbia, helping prospective buyers evaluate businesses before they invest. His consulting services focus on financial performance, cash flow, business valuation, potential risks and the questions buyers should be asking before proceeding with a purchase.
David is also the author of Finding Green Flags: Buying the Right Small Business, a practical guide based on two years of research into the small business buying process.
SMEConsultant is focused on one side of the transaction — the buyer’s.
The Business Buyer Problem
Buying a Business? Know What You’re Really Buying
When a business is offered for sale, the seller naturally wants to present it in the best possible light. Strong sales, loyal customers and future growth opportunities may be emphasized, while potential weaknesses may be less obvious.
For the buyer, the challenge is determining whether the financial performance, cash flow, assets and asking price support what is being presented.
This can be especially difficult for a first-time business buyer. Financial statements, Seller’s Discretionary Earnings, goodwill and business valuation can all influence what a business is actually worth.
The seller may also have a business broker, accountant and other professionals supporting the sale. The buyer deserves independent advice too.
Independent Analysis From the Buyer’s Perspective
SMEConsultant reviews the information supplied by the seller to help you develop a clearer understanding of the opportunity.
Independent analysis can identify financial concerns, potential risks, areas requiring further investigation and important questions for the seller or broker.
SMEConsultant does not make the purchasing decision for you. Instead, David provides independent analysis and professional insight to help you make a more informed decision before you invest.
How SMEConsultant Helps
A Straightforward Business Review Process
The consulting process starts by sending SMEConsultant a link to the business you are considering. You can then provide the Confidential Information Memorandum (CIM) and available financial information. Where required, documents can be provided subject to a Non-Disclosure Agreement (NDA).
David reviews the information and may request additional details from the seller or broker. Your confidential report can examine financial performance, projected cash flow, business valuation, assets, goodwill, potential risks and opportunities. It may also identify important follow-up questions that should be answered before you proceed.
The completed report provides an independent assessment of the business from the buyer’s perspective, helping you look beyond the sales presentation and better understand what you may actually be buying.
SMEConsultant provides this service for a fixed fee based on the sales revenue of the business being reviewed.
Frequently Asked Questions
Questions About SMEConsultant’s Business Buyer Services
Why do I need SMEConsultant?
SMEConsultant provides independent guidance from the buyer’s perspective, helping you better understand the financial information, valuation and potential risks before making a purchase.
Will I still need a lawyer and accountant?
Yes. SMEConsultant’s services complement the specialized legal, accounting and tax advice provided by professionals experienced in business acquisitions.
How much upfront cash will I need?
Requirements vary, but buyers may need approximately 20% of the purchase price, plus working capital and closing costs. Your lender and professional advisers can provide guidance based on your circumstances.
Does SMEConsultant meet with the seller?
Not normally. However, David may request additional information from the seller or business broker when needed for his analysis.
How detailed is the business report?
The report is as detailed as the information provided allows. More complete information generally allows for a more thorough analysis.
How much does the consulting service cost?
SMEConsultant charges a fixed fee based on the sales revenue of the business being reviewed.
Finding Green Flags
A Practical Guide to Buying the Right Small Business
David Walker is the author of Finding Green Flags: Buying the Right Small Business, a practical reference for people considering business ownership.
The book explores how to identify the green flags that make a business worth considering and the red flags that could indicate potential problems.
It covers key areas of the business buying process, including:
- Matching the buyer with the right business
- Where to find loan finance
- Making sense of Financial Statements
- Basics of Business Valuation
- Where to look for a business for sale
- Negotiation steps
- Writing a business plan
- Closing the deal
Whether you’re beginning your search or already considering a business for sale, Finding Green Flags provides additional information to help you become a more knowledgeable business buyer.
Finding Green Flags: Buying the Right Small Business
By David Walker
Contact SMEConsultant
Considering Buying a Business? Get an Independent Perspective Before You Invest.
A business purchase can represent a significant financial commitment. Before you proceed, make sure you have a clear understanding of the financial performance, cash flow, valuation and potential risks behind the opportunity.
SMEConsultant provides independent business buyer consulting to help you evaluate the information supplied by the seller, identify areas requiring further investigation and ask the right questions before making your final decision.
SMEConsultant is based in Victoria, British Columbia.
Request a Fixed-Fee Quote
Send David the business listing you are considering along with your contact information. He will review the initial information and contact you about the consulting process and fixed fee.