What makes more sense for business expansion — entering a new market or growing market share?
New Livestream guest – Gary Kunkle
I’m happy to have Gary join me on a live broadcast.
Gary is a business advisor and researcher who has spent years studying how companies grow, where they go wrong, and what actually drives profitable expansion.
Tune in as we discuss the critical decision business owners face when scaling — whether to expand into new markets or focus on capturing more share in an existing one.
We’ll also explore the hidden dangers of growth, why not all customers are profitable, and how smarter growth strategies can lead to better outcomes.
This is a ‘must see event’ for anyone looking to grow a business or make smarter strategic decisions.
Be sure to join live so that you can ask questions, replay will be available.
Set yourself a reminder on YouTube here: https://youtube.com/live/HPHYXJecP8o
We’ll be going live April 30,2026 Thursday at 2:35PM Atlantic Time and 1:35 PM Eastern Time
It’s a fair question: if real estate agents sometimes offer commission rebates, can a business buyer ask a broker for part of their commission?
In most cases, the answer is no—and here’s why.
Why Business Brokerage Is Different
Real estate and business brokerage may look similar, but they operate very differently.
A business broker typically handles:
Valuation of the business
Marketing and finding buyers
Assisting with financing and deal structuring
In real estate, these roles are often split across multiple professionals. In business sales, the broker does all three—often over months or even years.
Why Commission Rebates Are Rare
Business brokers usually rely on earning the full commission to justify the time and effort invested in each deal.
Unlike real estate:
Deals take longer to close
Fewer transactions succeed
Workload per deal is significantly higher
Because of this, brokers are far less likely to share or rebate their commission to buyers.
Where Commission Discounts Actually Happen
If a commission reduction occurs, it usually comes from the seller side, not the buyer.
This often happens when:
The seller receives a lower-than-expected offer
The broker agrees to reduce their fee to help close the deal
Buyers typically don’t have leverage to request part of the commission directly.
A Smarter Strategy for Buyers
Instead of asking for a rebate, buyers can sometimes benefit from creative deal structuring.
In certain situations, a broker may:
Defer part of their commission
Help bridge a financing gap
Structure payments to keep the deal alive
This approach aligns everyone’s interests without directly cutting the broker’s compensation.
Understanding the Market Reality
Business brokerage is a relationship-driven, high-effort process with fewer completed transactions than real estate.
Because of this, compensation structures are less flexible—and buyers need to adjust expectations accordingly.
If you want to learn more about creative private investments, check out my book Invest Local — available on Amazon or as a PDF from DCBBooklist.com
Key Takeaways
Business brokers rarely share commissions with buyers because of the complexity and workload involved in each deal. Instead, buyers should focus on creative deal structures that help bridge gaps without reducing broker incentives.
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If you think a big EBITDA number alone will get you a big exit… you’re in for a rude awakening.
In this episode, John sits down with longtime business advisor David Barnett—who’s helped sell hundreds of companies—to break down what actually drives value when it’s time to sell your business.
From misunderstood multiples to messy financials, from distressed sales to “built-to-sell” winners, this conversation pulls back the curtain on how deals really get done—and why most owners leave money on the table.
Because the reality is simple:
Buyers aren’t just buying your profit… they’re buying how confident they are that profit will continue without you.
What you’ll learn in this episode:
Why EBITDA alone doesn’t determine your valuation
The 2 questions every buyer asks before making an offer
How poor systems, bad margins, and owner-dependence kill deals
Most businesses don’t sell because they weren’t built to sell.
If you want a real shot at a high-value exit, this episode is your roadmap.
What happens when a business broker focuses on just one industry?
New Livestream guest – Bryan Baese
I’m happy to have Bryan join me on a live broadcast.
Bryan is a business broker who specializes exclusively in auto repair shops, and he’s built a strong business by focusing on a single niche.
Tune in as we discuss industry-specific business brokerage, how specialization can create real opportunity, and the biggest mistakes business owners make when preparing to sell.
We’ll also explore how the buyer landscape is changing and what it means for brokers and sellers today.
This is a ‘must see event’ for anyone interested in business brokerage, buying or selling a business, or building expertise in a specific industry.
Many business owners are surprised to learn they won’t receive all their money upfront when selling their business. In small business transactions, seller financing—also known as a vendor take-back (VTB) note—is common and often necessary.
But beyond helping close a deal, a seller note can serve a much bigger purpose: ongoing income.
Most buyers don’t have enough cash to purchase a business outright. Banks also prefer sellers to have “skin in the game,” which makes financing more accessible.
Without seller financing:
Fewer qualified buyers exist
Deals take longer to close
Final sale prices often decline
In short, offering financing increases the chances of a successful exit.
Think Like an Investor, Not Just a Seller
Instead of viewing a seller note as a compromise, it should be seen as an investment in the buyer’s success.
This means evaluating:
The buyer’s experience and background
Their plan to operate the business
Cash flow projections and debt capacity
Approaching the deal this way helps reduce risk and improves the likelihood of being paid consistently.
Structuring the Note for Success
One common mistake sellers make is demanding fast repayment terms.
While it may seem safer, aggressive timelines can:
Strain the business’s cash flow
Increase the risk of default
Jeopardize the entire deal
A well-structured note allows the buyer enough breathing room to operate successfully—protecting your investment.
A Reliable Source of Income
Seller financing can become a predictable income stream, often used as part of a retirement plan.
Compared to traditional savings accounts with minimal returns, seller notes typically offer significantly higher interest rates.
This creates an opportunity to:
Generate steady monthly income
Preserve long-term investments
Maintain financial flexibility post-sale
Managing Risk After the Sale
Smart sellers don’t “set and forget” their note.
They stay engaged by:
Monitoring financial performance
Reviewing reports regularly
Watching for early warning signs
Because sellers know the business better than anyone, they are often in the best position to protect their investment.
A Better Way to Close Deals
Seller financing isn’t just a tool to complete a transaction—it’s a strategic way to maximize value and create income.
By thinking like an investor and structuring the deal properly, sellers can turn part of the sale into a long-term financial asset.
If you want to learn more about creative private investments, check out my book Invest Local — available on Amazon or as a PDF from DCBBooklist.com
Key Takeaways
Seller financing can transform a business sale into a reliable income stream when structured properly. By evaluating the buyer and prioritizing sustainable cash flow, sellers can reduce risk while improving deal success.
👉 Want deeper dives like this? Join my email list at DavidCBarnettList.com for early access to videos, insights, and 7 free bonus gifts.
What happens when you leave corporate and suddenly have to do everything yourself?
New Livestream guest- Lisa Even
I’m happy to have Lisa join me on a live broadcast.
Lisa works with business leaders and teams, helping them navigate leadership challenges, build strong cultures, and manage the realities of running small teams.
Tune in as we discuss the transition from corporate to small business, what it really takes to manage a team where everyone wears multiple hats, and how to handle common challenges like family dynamics, promotions, and team culture.
This is a ‘must see event’ for anyone managing a small team or growing a business.
Find Lisa online at https://www.linkedin.com/in/lisa-even-have-good-ripple-effect-0778b112/
What’s the difference between an LOI, a term sheet, and an offer when buying a business?
If you’re trying to buy a small business, understanding how to structure your offer is critical.
In this video, I break down the key differences between these documents, what should be included, and how to avoid costly mistakes that can kill deals before they even get started.
One of the biggest reasons business sales fail has nothing to do with profit—it’s a misunderstanding of working capital.
Many business owners believe that if their company is valued at a multiple of earnings, that number represents what they’ll walk away with. It doesn’t.
That number is enterprise value—the value of the cash flow assuming everything needed to run the business is included. https://youtu.be/on4RmO0egMM
The Missing Piece: Working Capital
Working capital includes cash, receivables, and inventory required to operate the business.
If a buyer has to inject additional money after the purchase to keep things running, their total investment increases—and the deal quickly stops making sense.
For example, a business priced at $900,000 may actually require $1.1M+ when working capital is added. Buyers will either lower their offer or walk away.
Why Deals Fall Apart
From a buyer’s perspective, working capital is no different than equipment. If a key asset is missing, they must replace it—and adjust the price accordingly.
This is where many sellers go wrong. They assume:
Cash is “theirs”
Receivables belong to them
Working capital is separate from the sale
In reality, it’s part of what makes the business function.
The Real Fix: Prepare Early
The root issue is often poor balance sheet management—too much inventory, slow collections, or excess cash tied up in operations.
To fix this:
Streamline inventory
Improve receivables collection
Reduce unnecessary capital needs
Most importantly, start early. Buyers rely on historical data, so improvements should be made well before going to market.
A Smarter Way to Think About Value
If you want to sell successfully, think like a buyer.
Ask yourself: Would I pay this price and still earn a reasonable return after funding the business?
If the answer is no, the deal won’t work—no matter what a broker says.
Key Takeaways
Working capital is essential to business operations and must be included in the value buyers are paying for. If not properly managed, it will reduce offers or prevent a sale entirely.
👉 Want deeper dives like this? Join my email list at DavidCBarnettList.com for early access to videos, insights, and 7 free bonus gifts.
Most business owners think about growth. Far fewer think seriously about what makes a business sellable.
In this episode of Above The Business, Bradley Hamner sits down with David Barnett to talk about how buyers evaluate small businesses, what makes a company attractive in a sale, and why systems, delegation, and structure matter far more than most owners realize. They also break down the difference between SDE and EBITDA, why multiples are only a starting point, and how terms can matter as much as price in a deal.
David also shares why so many owners unknowingly build businesses that only a younger version of themselves could buy, and what has to change if they want a broader pool of buyers and a more valuable company.
When you're buying a part of a business, the numbers you get—financials, revenues, expenses—reflect the entire operation, not just the segment you're interested in. https://youtu.be/zrKQWzxN58w
So:
You don’t have clean, ready-made financials for the slice you're buying.
You need to reconstruct what that slice would look like if it stood on its own.
Steps to Evaluate a Partial Acquisition
1. Start with Sales Pull out the revenue attributable to the part of the business you're considering buying.
2. Estimate Cost of Goods Sold (COGS) Determine whether you can get the same supplier discounts as the full business currently does. If the existing business got volume discounts, your COGS might actually be higher.
3. Forecast Overheads This is where synergies get lost. Admin costs like payroll, accounting, or purchasing may have been shared. Now you’ll need your own setup, so costs go up.
4. Build a New, Hypothetical Income Statement Using all the info above, you create a “what-if” income statement as if this were a standalone business.
5. Apply Valuation Techniques Once you've got projected net income or cash flow, you:
Use a capitalization rate (e.g. 3x earnings), or
Use discounted cash flow (DCF) by projecting future cash flows and discounting them.
Friction with the Seller
Here’s the kicker:
What it's worth to you may not match what the seller thinks it's worth.
Why? Because:
You may lose efficiency (higher overheads).
You might not be able to access the same discounts or resources.
You’re probably taking on more risk.
So your version of the business will likely be less profitable, which should lower its valuation from your point of view.
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In this conversation, I sit down with David C. Barnett — author, consultant, and one of the most trusted voices in buying and selling small businesses.
We unpack the realities behind acquisitions, exits, and the myths entrepreneurs believe about valuation, risk, and “cashing out.”
David shares why most businesses never sell, what buyers are actually paying for, and how deal structure matters more than price.
We also explore how automation and AI fit into business value — and why, despite all the technology, small business is still deeply human.
If you're thinking about buying, selling, or building a business designed to last, this episode will change how you see ownership.
New Livestream guest- Chris Papin (CPA & Attorney)
I’m happy to have Chris join me on a live broadcast.
Chris brings a unique perspective as both a CPA and a lawyer, helping small business owners navigate acquisitions, due diligence, and critical growth decisions.
Tune in as we discuss what buyers often miss, how deals really work, and why having the right advisors can make or break your next business move.
This is a ‘must see event’ for anyone thinking about buying a business, growing one, or preparing for a major transition.
Be sure to join live so that you can ask questions, replay will be available.
