Business Broker Insights & Resources | Martin Navarro
Insights

Resources for Business Owners

Practical guides on buying, selling, and valuing businesses in Los Angeles — written by a broker who does this every day.

Business Valuations
How businesses are valued, what drives the multiple, and how to know your number before you sell.
Valuation

What Is My Business Worth? A Guide for Owners

How businesses are valued, what drives multiples up or down, and why professional valuations matter.

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Valuation

How Much Can I Sell My Business For?

SDE multiples by industry, what buyers are willing to pay, and how to maximize your sale price.

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Strategy

What Factors Increase the Value of a Business?

The 10 key drivers that buyers pay premium for — and how to strengthen them before you list.

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Valuation

How Are Businesses Valued?

The three main methods, earnings multiples, asset-based, and market comparables, and when each applies.

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Valuation

What Is Seller's Discretionary Earnings (SDE)?

The true owner benefit of a small business, how it's calculated and why buyers value on it.

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Valuation

What Is EBITDA?

The profitability metric used to value larger businesses, how it's calculated and how it differs from SDE.

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Valuation

SDE vs. EBITDA Explained

The key difference is owner compensation, which metric applies to your business, and why it matters.

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Valuation

What Are Add-Backs?

The expenses added back to profit to reveal true earnings, legitimate vs. aggressive, and why buyers scrutinize them.

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Valuation

What Is Adjusted EBITDA?

EBITDA normalized for one-time and owner-discretionary items to show true ongoing earning power.

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Valuation

What Is Normalizing Financial Statements?

Adjusting financials to show true ongoing performance, the process behind SDE and Adjusted EBITDA.

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Valuation

Revenue vs. Profit When Valuing a Business

Why buyers pay for earnings, not top-line revenue, and why margin, not size, drives value.

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Valuation

What Is Goodwill in a Business Sale?

The intangible value above tangible assets, brand, customers, reputation, and how it's valued and taxed.

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Valuation

What Multiples Do Businesses Sell For?

Most small businesses sell for 2x-4x SDE and mid-market for 3x-7x EBITDA, what drives the multiple, by industry.

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Valuation

What Lowers the Value of a Business?

Owner dependency, customer concentration, declining revenue, messy books, the value killers, and how to fix them.

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Strategy

How to Increase Value Before Selling

A practical 1-3 year plan, reduce owner dependency, build recurring revenue, and clean up financials.

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Valuation

How Buyers Determine Value

See your business through a buyer's eyes, verified earnings, a risk-based multiple, financing math, and return.

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Valuation

How Often Should a Business Be Valued?

Ideally annually or every few years, plus before a sale or major change, and why regular valuations pay off.

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Valuation

What Financial Documents Are Needed for a Valuation?

Three years of tax returns and financials, year-to-date figures, add-back detail, a preparation checklist.

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Valuation

Why Two Brokers Can Give Different Valuations

Differences in add-backs, multiples, and data, and how to spot a broker inflating the number to win your listing.

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Valuation

Should I Get Multiple Valuations?

When a second opinion helps, broker opinions vs. formal appraisals, and how to compare without chasing the highest.

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Valuation

Business Valuation Mistakes Owners Make

Pricing on revenue, trusting online calculators, mishandling add-backs, and emotional pricing, and how to avoid them.

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Selling Your Business
The complete process of selling a privately held business in California — from preparation through closing.
Selling

How to Sell a Business in Los Angeles

A step-by-step guide to selling your business in the LA market — from valuation to closing escrow.

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Process

What Are the Steps to Selling a Business?

The complete step-by-step process from the decision to sell through closing escrow.

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Preparation

How Do I Prepare My Business for Sale?

Everything to do 1-3 years before listing — financials, operations, legal, staffing, and more.

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Timing

When Is the Best Time to Sell a Business?

Business timing vs. market timing, peak value signals, and why waiting for "perfect" often backfires.

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Timeline

How Long Does It Take to Sell a Business in California?

Realistic timelines by stage, what speeds deals up, and what causes them to stall.

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Selling

What Documents Are Needed to Sell a Business?

A complete checklist, financial records, legal and corporate documents, the lease, contracts, and operations.

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Selling

How Confidentiality Works When Selling

Blind profiles, NDAs, buyer screening, and controlled information release, the system that protects your business.

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Selling

Should Employees Know I'm Selling?

Generally not until the deal is done, why, plus when and how to tell your team.

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Selling

Should Customers Know I'm Selling?

Usually not until after closing, how to handle key accounts, contract consents, and the transition.

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Process

What Happens After I Accept an Offer?

The LOI, due diligence, financing, the purchase agreement, escrow, and closing, from offer to done.

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Process

What Happens During Due Diligence?

What the buyer examines, what you provide, and how to come through with your deal intact.

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Process

What Happens After Closing?

The transition period, seller-note payments, the non-compete, escrow holdbacks, and your next chapter.

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Selling

The Biggest Mistakes Sellers Make

Overpricing, poor preparation, bad timing, and breaking confidentiality, and how to avoid each.

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Advisory

Can I Sell My Business Without a Broker?

An honest look at what it takes, the risks of going it alone, and when FSBO actually works.

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Selling

Why Businesses Don't Sell

Overpricing, poor financials, owner dependency, and weak marketing, the top reasons, and how to fix them.

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Buyers

What Buyers Look For in a Business

Clean financials, recurring revenue, low owner dependency, and diversified customers, sell to match.

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Negotiation

How to Negotiate the Sale of Your Business

It's about terms, not just price, know your walk-away, use the levers, and negotiate from strength.

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Selling

Can I Sell My Business if I'm Losing Money?

Yes, but valued differently, on assets, revenue, or turnaround potential. Who buys, and how to position it.

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Buying a Business
How to find, value, finance, and close an acquisition — the complete buyer's playbook.
Buying a Business

How to Buy a Business: The Complete Guide

The full step-by-step process, from defining your criteria to financing, due diligence, and closing.

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Buying a Business

Buying Your First Business

What first-time buyers need to know about choosing, financing, and safely closing on a business.

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Buying a Business

How Much Money Do You Need to Buy a Business?

Down payment, closing costs, working capital, and reserves, and how SBA and seller financing change the math.

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Buying a Business

Understanding Seller Financing

How a seller note works, why buyers and sellers use it, typical terms, and how it fits with SBA loans.

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Buying a Business

How to Perform Due Diligence

Financial, legal, and operational checks, the full document checklist, and what to do when problems surface.

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Buying a Business

Buying a Business with SBA Financing

What an SBA 7(a) loan finances, requirements, ~10% down, the process and timeline, and how to get approved faster.

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Buying a Business

Red Flags to Watch For When Buying a Business

Messy financials, customer concentration, owner dependency, and evasive sellers, what each warning sign means.

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Buying a Business

Common Buyer Mistakes

The avoidable errors that derail buyers, from shopping without financing to running out of cash after closing.

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Buying a Business

Questions to Ask When Buying a Business

The essential questions about financials, why the owner is selling, customers, and operations, plus the answers that should worry you.

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Buying a Business

Buying an Existing Business vs. Starting One

Compare risk, cost, financing, and speed to profit, and which path fits your goals.

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Buying a Business

How to Negotiate a Business Purchase

It's about more than price, seller financing, earnouts, transition, allocation, and using leverage.

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Buying a Business

Buying a Franchise vs. an Independent Business

Brand support, costs and royalties, control, financing, and resale value compared.

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Buying a Business

Can You Buy a Business with No Money Down?

The reality: truly zero-down is rare, but low-money-down deals through standby seller notes are achievable.

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Buying a Business

How to Read Financial Statements

The P&L, balance sheet, and cash flow, how to get from net income to SDE, and the red flags to watch for.

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Buying a Business

How Long Does It Take to Buy a Business?

Typically six months to a year, the timeline stage by stage, and what speeds it up or slows it down.

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Buying a Business

What Makes a Great Acquisition?

Durable cash flow, low owner dependency, diversified customers, growth upside, and the right price and structure.

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Buying a Business

Buying Businesses as an Investment Strategy

Cash flow, leverage, debt paydown, and returns, plus the risks of acquisition investing and how to start.

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Buying a Business

Should You Buy Multiple Businesses?

Roll-ups, portfolios, and vertical integration, when you're ready for a second, and how to finance and manage them.

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Buying a Business

How Search Funds Work

The two-phase model, economics, and who it's for, raising capital to find, acquire, and run a business.

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Buying a Business

When Should You Walk Away From a Deal?

The dealbreakers that should end a deal, distinguishing them from cold feet, and how to walk away the right way.

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SBA Financing
How to finance a business purchase with an SBA loan — requirements, down payment, timelines, and approval.
SBA Financing

SBA Loans Explained

The complete guide: programs, what they finance, rates and terms, the ~10% down payment, eligibility, and costs.

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SBA Financing

SBA 7(a) Loans Explained

The go-to loan for buying a business, what it finances, amounts and terms, and 7(a) vs. 504.

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SBA Financing

SBA Loan Requirements

What lenders look for in you and the business, credit, experience, cash flow, guarantees, and collateral.

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SBA Financing

How Much Down Payment Does an SBA Loan Require?

Generally a ~10% equity injection, part of which a standby seller note can cover. How the down payment works.

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SBA Financing

SBA Loan Timelines

How long an SBA loan takes, typically 60-90 days, the timeline stage by stage, and how to speed approval.

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SBA Financing

What Businesses Qualify for an SBA Loan?

Eligible for-profit operating companies vs. the industries the SBA excludes, and the decisive cash-flow test.

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SBA Financing

SBA Seller Financing Requirements

How a seller note works with an SBA loan, standby rules, and how it counts toward your equity injection.

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SBA Financing

Common SBA Loan Problems

Messy financials, weak cash flow, a low valuation, and lease issues, the pitfalls that stall deals, and how to avoid them.

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SBA Financing

What Financial Documents Are Required for an SBA Loan?

The full checklist, personal financial statement, tax returns, business financials, and the deal documents.

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SBA Financing

How to Get Approved for an SBA Loan Faster

Get pre-qualified, buy clean financials, use a Preferred Lender, organize documents, and respond quickly.

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SBA Financing

SBA Personal Guarantees Explained

Who must sign, what personal liability and collateral mean, why it's required, and how to think about the risk.

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SBA Financing

SBA Loans for Veterans

How veterans can use SBA financing to buy a business, available benefits, and why military experience is an asset.

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SBA Financing

SBA Loan Myths, Debunked

That they take forever, need perfect credit, or require huge down payments, the reality behind each misconception.

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SBA Financing

What Happens If Your SBA Loan Is Denied?

The common reasons, whether to appeal or reapply, trying another lender, and alternative financing paths.

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SBA Financing

SBA Closing Costs Explained

The guarantee fee, lender fees, valuation, legal and escrow costs, and how many can be financed into the loan.

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Finding Buyers & Working With a Broker
How buyers are found and qualified, where businesses get marketed, and what a broker actually does for you.
Business Broker Education
What a business broker does, how they're paid, and how to choose the right one to sell your business.
Broker Education

What Does a Business Broker Do?

Valuation, confidential marketing, buyer screening, negotiation, and deal management, the full role explained.

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Broker Education

The Complete Business Brokerage Process

From valuation to closing and transition, the full step-by-step process a broker runs on your behalf.

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Broker Education

How Business Brokers Get Paid

Success-based commissions (around 10% for small businesses), the Lehman scale, and retainers, explained.

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Broker Education

Questions to Ask Before Hiring a Business Broker

Experience, valuation approach, fees, marketing, buyer network, and who handles your deal, what to ask.

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Broker Education

What Makes a Great Business Broker?

Experience, honesty, discretion, buyer network, negotiation skill, and deal management, how to recognize one.

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Broker Education

How Business Brokers Market Businesses

Blind profiles, marketplaces, buyer databases, and direct outreach, all while protecting confidentiality.

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Broker Education

How Buyers Are Qualified

Financial capacity, financing readiness, experience, and intent, why buyer screening protects you.

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Broker Education

What Happens During a Listing Appointment?

The broker learns your business and goals, discusses valuation and process, and reviews the agreement.

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Broker Education

Exclusive vs. Open Listing Agreements

What each means, and why an exclusive listing with a broker you trust is usually the better choice.

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Letters of Intent
The document that turns an accepted offer into a deal framework — how an LOI works, what to include, and how to negotiate it.
Letters of Intent

What Is a Letter of Intent?

What an LOI is, what it does, where it fits in the deal, and why it's mostly non-binding.

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Letters of Intent

What Should Be Included in an LOI?

Price and structure, contingencies, exclusivity, transition, and timeline, the essential components.

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Letters of Intent

How to Write a Letter of Intent

Keep it clear and focused, balance specificity with flexibility, and mark the binding provisions.

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Letters of Intent

Common LOI Mistakes

Vague terms, unclear binding language, mishandled exclusivity, and rushing, the errors that derail deals.

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Letters of Intent

Exclusive vs. Non-Exclusive LOIs

How the no-shop clause works, why buyers want exclusivity, and what's a fair period for sellers.

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Letters of Intent

Binding vs. Non-Binding Terms in an LOI

Deal terms are usually non-binding, but exclusivity and confidentiality bind, why the distinction matters.

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Letters of Intent

Purchase Price Adjustments Explained

Working capital, inventory true-ups, earnouts, and holdbacks, why the final price can differ.

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Letters of Intent

LOI Negotiation Strategies

Negotiate the whole deal, know your priorities, use leverage, and keep momentum, for buyers and sellers.

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Letters of Intent

Should Sellers Accept the First LOI?

Not automatically, evaluate the terms, buyer quality, and financing, but a strong first offer can be your best.

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Due Diligence
How buyers verify a business before closing — the checklist, each type of diligence, red flags, and what to do when problems surface.
Due Diligence

Due Diligence Checklist

A complete checklist, financial, legal, operational, employee, lease, and tax items to verify before buying.

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Due Diligence

Financial Due Diligence Explained

Reconciling financials to tax returns, verifying add-backs, and testing revenue quality, how buyers confirm the numbers.

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Due Diligence

Legal Due Diligence Explained

Entity standing, liens, contracts and assignability, litigation, licenses, and IP, what attorneys review.

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Due Diligence

Employee Due Diligence

The roster, compensation, key-employee retention, worker classification, and liabilities, verifying the team.

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Due Diligence

Lease Due Diligence

Remaining term, options, assignability, and rent, why the lease can make or break a location-dependent deal.

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Due Diligence

Tax Due Diligence

Verifying tax compliance, uncovering liabilities, clearances, and avoiding successor liability.

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Due Diligence

Red Flags That Kill Deals

Unverifiable earnings, undisclosed liabilities, lease problems, and a dishonest seller, what ends deals.

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Due Diligence

What Happens if Problems Are Found?

Renegotiating, holdbacks and indemnities, adjusted terms, or walking away, how issues get resolved.

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Due Diligence

Buyer Due Diligence Mistakes

Rushing, trusting the seller's numbers, skipping advisors, and re-trading in bad faith, how to run diligence right.

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Due Diligence

Seller Due Diligence Mistakes

Poor preparation, hiding problems, slow responses, and inflated add-backs, how sellers survive buyer scrutiny.

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Escrow & Closing
How a business sale closes — escrow, the documents, fees, delays, closing day, wire-fraud safety, and deal structure.
Escrow & Closing

Escrow Explained

How the neutral escrow holder holds funds, coordinates conditions, and protects both buyer and seller.

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Escrow & Closing

Closing a Business Acquisition Successfully

Preparation, responsiveness, the right team, and a planned transition, the playbook for a smooth close.

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Escrow & Closing

Asset Sales vs. Stock Sales

The liability and tax differences, and why buyers usually prefer asset sales in small-business deals.

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Escrow & Closing

What Documents Are Signed During Escrow?

The purchase agreement, bill of sale, assignments, promissory note, and non-compete, what each one does.

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Escrow & Closing

What Happens on Closing Day?

Final documents are signed, funds are disbursed, and ownership transfers, what to expect when a deal closes.

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Escrow & Closing

How Long Does Escrow Take?

Typically a few weeks to a couple of months, what financing, clearances, and licenses do to the timeline.

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Escrow & Closing

Escrow Fees Explained

What escrow fees cover, who pays (often split), typical amounts, and the other closing costs to budget for.

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Escrow & Closing

Common Escrow Delays

Financing, lease and landlord issues, license transfers, and tax clearances, the delays, and how to avoid them.

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Escrow & Closing

Wire Fraud Prevention

How business-email-compromise scams work, why you must verify wiring instructions by phone, and what to do if targeted.

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Escrow & Closing

What Happens if a Deal Falls Apart?

Common causes, what happens to the deposit, whether it can be revived, and how to protect yourself.

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Business Acquisitions & Wealth Building
Advanced strategies for building wealth through acquisitions — ETA, roll-ups, deal structures, and exit planning.
Wealth Building

ETA (Entrepreneurship Through Acquisition) Explained

Building wealth by buying a business instead of starting one, the models, why it works, and how to start.

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Wealth Building

Roll-Up Strategies Explained

Acquiring multiple businesses in one industry to build scale and capture multiple arbitrage.

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Wealth Building

Private Equity Acquisitions Explained

How PE firms buy, improve, and sell businesses, and what selling to private equity means for an owner.

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Wealth Building

Family Office Acquisitions Explained

Patient, long-term capital that buys and holds, what family offices want and how they differ from PE.

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Wealth Building

Holding Companies Explained

The structure serious acquirers use to own a portfolio, liability protection, tax efficiency, and capital allocation.

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Wealth Building

Buying Businesses for Passive Income

Semi-passive ownership is achievable with the right business and management, the realistic picture.

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Wealth Building

Creating Generational Wealth Through Acquisitions

Cash flow, leverage, and reinvestment compounding over time, plus structures to pass wealth to the next generation.

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Wealth Building

Exit Planning Strategies for Business Owners

Start years early, know your options, maximize value, and plan taxes, so you exit on your terms.

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Deal Structure

Earnouts Explained

Part of the price tied to future performance, why they're used, how they're structured, and the dispute risk.

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Deal Structure

Working Capital Adjustments Explained

Delivering the business with normal working capital, the peg, the true-up, and how it's negotiated.

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Deal Structure

Asset Allocation (Purchase Price Allocation) Explained

Dividing the price across asset classes for tax, why buyers and sellers have opposing preferences.

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Deal Structure

Non-Compete Agreements Explained

Why the seller agrees not to compete, typical scope and duration, enforceability, and California's rules.

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Deal Structure

Transition and Consulting Agreements Explained

How the seller helps hand off the business, duration, scope, compensation, and why they protect value.

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Deal Structure

Employee Retention During Acquisitions

Stay bonuses, retention agreements, timing and communication, keep the team that makes the business valuable.

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Wealth Building

Tax Planning Before Selling Your Business

Start years early, deal structure and allocation, installment sales, and strategies to keep more of your proceeds.

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Industry-Specific Valuations
What businesses in specific industries actually sell for — the multiples, value drivers, and Southern California market realities.
Industry Valuation

How Much Is an HVAC Company Worth?

HVAC companies sell for 2.5x-5x SDE. How recurring maintenance contracts and technician retention drive the multiple.

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Industry Valuation

How Much Is a Plumbing Company Worth?

Plumbing businesses sell for 2x-4.5x SDE. Why service and repair work commands more than new construction.

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Industry Valuation

How Much Is a Restaurant Worth?

Restaurants sell for 1.5x-3x SDE, or ~25-40% of sales. Why the lease is often worth more than the profit.

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Industry Valuation

How Much Is a Medical Spa Worth?

Med spas sell for 3x-6x SDE. How memberships, injector retention, and the medical director structure set the price.

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Industry Valuation

How Much Is a Construction Company Worth?

Contractors sell for 2x-4x SDE plus assets and backlog. How CSLB licensing and bonding capacity affect the deal.

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Industry Valuation

How Much Is a Manufacturing Company Worth?

Manufacturers sell for 3x-6x EBITDA plus assets. Why customer concentration is the number-one swing factor.

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Industry Valuation

How Much Is a Fitness Center Worth?

Gyms and studios sell for 2x-3.5x SDE. How recurring membership revenue and churn determine value.

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Industry Valuation

How Much Is a Roofing Company Worth?

Roofers sell for 2.5x-5x SDE. Why recurring maintenance beats storm-chasing, and how warranties factor in.

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Industry Valuation

How Much Is an Auto Repair Shop Worth?

Auto shops sell for 2x-3.5x SDE — and the real estate is often the bigger prize. How to structure the deal.

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Industry Valuation

How Much Is a Dental Practice Worth?

Dental practices sell for 60-85% of collections, or 4x-7x EBITDA for DSO buyers. How payer mix and associates drive value.

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Industry Valuation

How Much Is a Bakery Worth?

Bakeries sell for 2x-3x SDE. Why wholesale and B2B accounts are worth more than a retail-only counter.

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Industry Valuation

How Much Is a Daycare Worth?

Childcare centers sell for 2.5x-4x SDE, often plus real estate. How enrollment and licensed capacity drive value.

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Industry Valuation

How Much Is a Dry Cleaner Worth?

Dry cleaners sell for 2x-3x SDE, but environmental (perc) liabilities and commercial accounts can swing the price.

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Industry Valuation

How Much Is an Ecommerce Business Worth?

Ecommerce sells for 2.5x-4x SDE, with strong DTC brands reaching 4x-5x+. How brand ownership and channel mix drive value.

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Industry Valuation

How Much Is a Landscaping Company Worth?

Landscapers sell for 2x-3.5x SDE. Why recurring maintenance contracts beat one-time design-build work.

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Industry Valuation

How Much Is an Assisted Living Facility Worth?

RCFEs and assisted living are valued on occupancy, EBITDA or cap rate, and real estate. How payer mix drives the price.

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Industry Valuation

How Much Is a Chiropractic Practice Worth?

Chiropractic practices sell for 60-75% of collections, or 1.5x-3x SDE. How owner dependency and cash-wellness models matter.

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Industry Valuation

How Much Is a Cleaning Company Worth?

Cleaning companies sell for 2x-4x SDE. Why recurring commercial janitorial contracts are worth more than residential.

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Industry Valuation

How Much Is a Printing Company Worth?

Printers sell for 2x-3.5x SDE plus equipment. Why packaging, signage, and wide-format beat commodity print.

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Industry Valuation

How Much Is a Franchise Worth?

Franchise units resell for 2.5x-4x SDE, adjusted for brand strength, royalties, and remaining term. What buyers pay for.

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California & Local SEO
State-specific rules and local-market guidance for buying and selling businesses across California and Southern California.
California

Selling a Business in California

The process plus California's rules on escrow, seller disclosure, employment law, sales tax, and capital gains.

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California

Buying a Business in California

The buyer's guide to California, escrow and bulk-sale rules, license transfers, employment diligence, and financing.

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California

California Business License Transfers Explained

How the seller's permit, local licenses, professional licenses, and ABC liquor licenses transfer in a sale.

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California

California Seller Disclosure Requirements

What sellers must disclose, material facts, financial accuracy, and why transparency protects you from liability.

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California

California Escrow Requirements

Bulk-sale law, notice to creditors, licensed escrow holders, and the typical California closing timeline.

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California

California Employment Laws During a Business Sale

Final pay and PTO payout, Cal-WARN, at-will rehiring, wage-and-hour risk, and successor considerations.

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California

California Sales Tax Issues in a Business Sale

Tax on tangible assets, the occasional-sale rules, successor liability, and the CDTFA tax-clearance certificate.

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California

California Lease Assignments Explained

Landlord consent, assignment vs. sublease, personal guarantees, and why the lease can make or break your deal.

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California

California SBA Loan Requirements

The federal requirements plus California factors, licensing, lease terms, environmental review, and higher prices.

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California

California Capital Gains Tax Considerations

California taxes gains as ordinary income, how allocation, installment sales, and planning affect what you keep.

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Local SEO

How to Sell a Business in Santa Clarita

Local market insight for Valencia, Newhall, Saugus, and Canyon Country, plus the steps to sell for full value.

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Local SEO

Selling a Business in Ventura County

Local guidance for Thousand Oaks, Simi Valley, Oxnard, Camarillo, and Ventura, and how to sell for top value.

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Local SEO

Buying a Business in Santa Clarita

The local market, what to look for across the SCV, financing, and the California steps to close.

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Local SEO

Best Businesses to Buy in Southern California

Home services, healthcare, and essential recurring-revenue businesses, and what makes them strong acquisitions here.

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Local SEO

Southern California Business Valuation Guide

How businesses are valued here, SDE and EBITDA multiples, industry ranges, and local factors that move your price.

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Local SEO

How to Find Buyers for Your Business in California

Buyer types, confidential marketing, and broker networks, why the right buyers, not the most, get deals done.

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