Quality of Earnings: What You Need to Know with John Hannum

The Exit Plan: Mergers and Acquisitions for Creative Entrepreneurs

In this conversation, John Hannum, founder of PPS Solutions, discusses his journey in finance, the importance of CFO services for small businesses, and the intricacies of SBA loans. He explains the quality of earnings process, the differences between asset and share purchases, and shares insights on the buy-side perspective in M&A transactions. John emphasizes the significance of clean financial records for business owners preparing for sale and offers practical advice for navigating the complexities of business acquisitions. Takeaways

• Small businesses often require CFO services during financial challenges.
• SBA loans are a popular financing option for acquisitions.
• Seller financing can be creatively structured in deals.
• Accrual accounting provides better insights for decision-making.
• Quality of earnings reports validate business financials before sale.
• Understanding deal structures is crucial for buyers and sellers.
• Clean financial records can lead to higher business valuations.
• The transfer of businesses from retiring owners is a growing trend.
• Buy-side representation is more common in current market conditions.
• Operational efficiency is key to successful business growth.

Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/

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Learn more about PPS Solutions: http://www.ppsfinance.com/

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