u/pkvmsp123

Looking at a service businesses doing roughly $400K–$600K in revenue.

On paper, SDE comes out to around 50% of revenue, while a more normalized EBITDA lands closer to 35%.

The seller’s logic makes sense: the current owner works full-time in the business, so his compensation is added back and a new owner could theoretically step into that role and capture the full SDE.

But if the buyer wants to be an owner, not the foreman, that changes the picture quite a bit. Replacing the seller with a capable manager/foreman could easily cost $70K+.

Would you still value this primarily on SDE, or would you shift toward adjusted EBITDA for a buyer who does not plan to work in the business day to day?

A close friend of mine is an incredibly talented artist, but she's not very tech savvy. I'm helping her put together the website, subscriptions, and all the behind the scenes stuff because I'd really love to see her succeed, but I'm realizing I don't know much about how artists actually scale something like this.

The idea is to create a monthly art mail club where subscribers get an exclusive print, stickers, postcards, and maybe every so often something like a bookmark, magnet, or pin.

I've looked at services like Printful and Fourthwall, but it seems like by the time everything is printed and shipped there isn't much margin left if you're charging around $15 or $20 a month. I feel like I must be missing part of the process because I see artists doing this all the time.

How are people sourcing all these items? Are most of you ordering everything in bulk and shipping yourselves? Is there a company that specializes in putting these kinds of artist subscriptions together? And at what point does it make sense to use a fulfillment company instead of packing everything yourself?

I'd really appreciate any advice or recommendations. I'm trying to make this as simple as possible for her so she can spend her time creating art instead of worrying about logistics.

I had a really great conversation today with a really bright broker.

The conversation centered around my desire to become a business broker.

I have personal experience with buying and selling my own businesses, and using brokers myself, and understanding the process.

I am in Florida and have my real estate license. I acquired it for this purpose.

The question I have is what should I look for as far as mentorship goes, what are some of the struggles that a new broker goes through, coming into this business, that is outside of the time it takes from when you start to when you get your first deal. I'm well aware of that. I mean once you get your opportunities, maybe your first listing, how did having a mentor and what did the mentorship look like for you? What would have helped you as a fresh new broker to develop?

Looking for recommendations for factories that can make hats, similar to the hats that Alo, Lulu, other activewear, Polyester, Spandex blend?

Thanks

This is both an update on these two, but also me seeking more advice:

r/businessbroker/s/MVGvDNsXba

r/businessbroker/s/5U4xknTNT5

I've now passed my Florida exam and am a licensed associate.

Now, I'm trying to figure out my next steps.

As outlined in the previous posts, I have experience with a few personal M&A deals, and the reason I got my realtor's license was to work in this field. However, how I enter it is still a big factor and question for me.

1. I really want to enter it in a part-time, dip-my-toe kind of way. Maybe a part-time role as an MSP or technology "expert" advisor in a firm, with light hours to start, gain some experience, and grow into a full-time position.

2. Go all in. I do have the financial flexibility for this, but the prospect of no pay for an unknown, undetermined amount of time, with no direct experience in the field, is scary as shit.

3. I have a good friend who actually wants me to join his real estate "team." I could join and likely balance some real estate deals with him (I know the market is tough, but his niche is still moving, which is why he wants some help), but if I join his brokerage, then I can't work part-time at a business brokerage, since I can't hang my license at two shops.

I guess my primary question is, how feasible is #1, and would it be reasonable/possible to somehow make #3 work?

Honestly, #2 is not something I'm truly considering right now.

I am currently going through an additional certification called CISM, so I may start a part-time vCISO firm, and if I can get a couple of clients there, I would be more inclined to go with #2, balancing the vCISO firm part-time and going "all-in" on being a business broker.

I feel like I am all over the place.

Any thoughts, as maybe some of you went through something similar when switching careers, would be appreciated.