Episode 161 – Why you need a Peer Advisory Group

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This episode features “Friend of the Show” Jason Terry back once again to share his wealth of experience in marketing, IT, and building fruitful peer advisory groups.

Join the conversation as Jason delves into the significant differences between peer advisory and networking groups. He shares riveting anecdotes and life-changing stories from decades-long participation in peer advisory groups, accentuating the essential support system they provide through both business hurdles and personal challenges. Whether you are new to the concept or looking to refine your existing group, this episode offers insightful guidance and motivation to cultivate a thriving business environment.

Also, during this podcast, Jason mentions a couple of YouTube videos about starting and operating a peer advisory group… so we include those resources below:

New Administration, Same SBA

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New Administration, Same SBAWe’ve covered all the most recent changes to the SBA in previous articles in 2023 and 2024, and as 2025 continues, it’s as good a time as any to revisit SBA basics, as they guarantee a great deal of our loans here at Apex.

No Pre-Qualifications

When you go to buy a car or a house some banks will offer some sort of document that “pre-authorizes” you access to a certain amount of credit. That document helps you to know what you can realistically shop for. On the bank’s side, they are making judgements at that point based on your credit history and current financial situation. Once they have a look at the vehicle or the house, then they have all the information they need to make a final decision and fund the purchase. It doesn’t work that way with business sales.

While the bank may take a look at your driving history or your tenancy record, they aren’t going to interview people who have driven with you or lived with you in order to find out if they should fund a vehicle or a house. Most of our SBA loans are collateralized by existing cash flow in the business. So the bank needs to know that the buyer is going to keep that cash flow going so that they can be made whole (and earn some interest).

What’s Your Story?

They will have some of the same conversations with you that we, as advisors, do. Are you the sort of person who’s in love with the bottom line of a business and what kind of money it will give you? Or are you someone in love with the industry or a specific company and are full of ideas on how you can grow it and make it prosper? We’ll give you one guess as to which profile bankers prefer.

This is because the bankers who work with us, even if they are part of an institution that’s an SBA Preferred Lender, don’t make decisions on their own say-so. They have peers and committees they have to answer to, and they will introduce each loan candidate with a story. The stronger the story, the likelier that the loan will be approved.

This reality is the same now as it was when the SBA (not so very long ago) required 25% down payments, when they required 10% down payments, and even (as we rarely see) when they allow for 5% down if the seller carries the other 5% until the loan is paid.

That reality is also the same no matter what the interest rate is, and yes, rates are higher than what we’ve seen for some time. But businesses are still selling, though some sellers are taking account of the lending market and choosing to be more flexible and accommodating to buyers in deal terms.

A Vital Link

It’s one thing to say the SBA makes our job easier and the job of our banking partners easier, and they do. Without the SBA we wouldn’t be able to fund many of the deals that happen every day here at Apex. But if you zoom out a bit, you realize the SBA makes life in America easier. If the government isn’t willing to take some fees from many who participate in SBA lending (and as we have talked about in previous rule changes, the smallest borrowers do not have to contribute what they used to in the past) in order to provide insurance against businesses who fail before repaying their loan, there simply wouldn’t be a way to get these businesses transitioned to the next generation of owners.

And that’s why, despite which administrations come and go, and which ones promise to cut costs and waste (and some, miraculously, do), the SBA still provides outstanding value for money, and is one of those government agencies that a lot of people, including us here at Apex, are happy to have helping the American people.

Know that you want an SBA loan but not sure which bank to go with? We have a whole posse of bankers we trust we’d be happy to introduce you to. Give us a call.

Photo courtesy of Shashi Bellamkonda.

Episode 160 – Stepping up your AI game to create Business Success

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Welcome to the Apex Business Advisors Podcast, hosted by Andy Cavanaugh and Doug Hubler. In this engaging episode, they are joined by Jason Terry, who is now officially crowned as a Friend of the Show. Jason, an expert in AI tools for small businesses, shares his insights into leveraging technology to enhance business efficiency and streamline operations.

The discussion dives into Jason’s favorite AI tools and how they have transformed the way businesses operate. From marketing strategies using ChatGPT to creating stunning visuals with AI image generators like MidJourney and Canva.

Additionally, the episode covers practical examples of AI’s impact on daily tasks, such as using Grammarly to refine written communication and utilizing advanced social media scheduling tools like SocialPilot. With an emphasis on innovation, the conversation reminds listeners of the importance of exploring and integrating AI solutions to stay competitive in today’s fast-paced, tech-driven world.

Trust During Sale and Transition

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Trust During Sale and Transition

Photo by Alex Shute on Unsplash

Unlike many other transactions in life, a buyer and seller of a business need to establish trust with each other, as that trust will be called on even after the date of sale. If that trust doesn’t start during the due diligence period, a sale may even fall apart.

Contrast this with a real estate transaction, in which the buyers and sellers may never meet, even on the day of closing. They are represented by others and can close without meeting employees or learning processes.

Help in the Present

Many buyers may be owning and operating a business for the first time, so they will appreciate any kind of help they can get. Basic examples of easy connections a seller can make for a buyer:

  • A resource or service to get incorporated, obtain an EIN, etc.
  • Some business banks to consider, including a personal introduction to your own banker, if appropriate
  • Introductions to other peers and colleagues who you have leaned on for business advice and help who may also offer some helpful advice to the incoming owner

Help in the Future

While some business owners are happy to ride off into the sunset after the transition period, never to think about or worry about their former business again, the truth is that many business owners like to know how their former company (and employees) are doing. Many really appreciate the phone call, long beyond an agreed-to contractual transition time, of, “Hey, could I run an idea by you…”

The trust and relationship behind such a phone call underline a great key to success in a business transaction: trust.

We always say that buyers and sellers are building trust not just with each other, but with everyone involved in the transaction, creating an environment of everyone rowing in the right direction. This means that buyers are disclosing everything to the bank financing the deal. This means that sellers are not hiding bad inventory or employee challenges. It means that advisors are using the right kind of communication, be it text, email, or phone calls, to move the transaction forward in a positive manner, always implying cooperation on all sides.

Checklist of Trust

So, to review, sellers should keep the following in mind:

  • Share everything you can think of and even some things you might have forgotten about. Try to put yourself in the shoes of the buyer, taking into account what he/she knows about your industry and business in general and work from there.
  • Be realistic. There may have been some areas you didn’t develop when you were an owner that are opportunities for the buyer. Be moderate in your claims.
  • Communicate as quickly as you can. Nobody wants to be left waiting in any aspect of life, much less one of the most important transactions they can make. Try to get back to every request in a timely manner or ask for time you need (and deliver).

Buyers should keep the following in mind:

  • Ask questions. There is no such thing as a dumb question in life, and certainly not in buying a business. Our advisors are here to help you with every single question you might have (and some you didn’t know you had).
  • Disclose. Whether the bank is asking you for financial statements or the seller is asking you about your experience in the industry, always be transparent. There will be no benefit in hiding or withholding.
  • Get help. You’re not expected to do this on your own. Use the right suite of experts, be they attorneys, accountants, or mentors, to help you with things you don’t know. If you don’t know something, go back to the previous point: ask questions.

Looking forward to working in trust with an advisor to sell your business? Give us a call today.

Episode 159 – Know Your Broker – Steve Weaver

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It is the return of veteran Steve Weaver, who joins from Fairhope, Alabama. Steve shares his journey in business brokerage across various locations, highlighting his plans for expanding Apex’s influence in the booming Gulf Coast region.

Steve talks about his involvement with Rotary, leading efforts to make a positive community impact through service. The conversation also delves into the importance of selecting the right business listings, maintaining Apex’s commitment to quality over quantity, and the value of leveraging personal experiences to connect with clients.

Doug and Andy explore Steve’s strategic plans for the Southeastern market, emphasizing targeted growth in manufacturing and distribution. This informative episode sheds light on business advisement, regional growth opportunities, and the community-focused approach embraced by Apex Business Advisors.

Four Standards That Apex Clients Meet

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Some time back Chuck Campbell came on our podcast to talk about some basic standards that he as an advisor holds to before moving forward with any deal. They are standards we are very aligned with as a team here at Apex so we wanted to share them here on the blog too.

1. We Understand the Business

Warren Buffet has famously said that he doesn’t invest in things he doesn’t understand, and that led to his missing out on investing in both Amazon and Google. You can dispute the wisdom of this as an investing strategy, but we don’t dispute it as a rule for representing buyers. If we don’t understand your business, we won’t be able to showcase it the way it deserves. Thankfully, we have so much expertise on our team that we’ve almost certainly sold a business in your category before, if not a business similar to yours. If you want you can even find advisors on our team who have sold their own companies in your industry.

2. We Think It’s Marketable

You might have a great business but it may not be a good time to go to market. For example, if you had a wonderful travel agency and were hoping to list in April 2020, we probably would have told you to wait until things got clearer. It’s not enough to have a solid business: there has to be a willing market for that solid business. It’s our job to monitor the market and at our weekly meeting we are sharing information such that as a team we have a great sense of what’s going on, even in industries we’re not currently representing.

3. The Seller Must Be Realistic

Andy Cavanaugh shared that a dry cleaning business that had fantastic numbers in 2017 and 2018 but had come to us in 2024 hoping we might just overlook the dreadful 2020 and 2021 Covid numbers. The seller wasn’t recognizing (or perhaps accepting) that whatever understandable hit a dry cleaning business took in a year or two when many people worked in their pajamas, that a serious and fundamental change had occurred in relation to business travel, meetings, and even office space. His industry, without innovation or add-ons, is in a challenging time. We could only sell the business for what it is doing now, not for its admirable performance in the past.

4. We Have to Like and Trust You

When we say “like and trust” we aren’t implying we become best friends with everyone we represent. But we do mean that how you conduct yourself with us is likely how you will conduct yourself with others and if you can’t get along with us (it’s happened!) you’ll probably have a harder time getting along with the broader marketplace.

Chuck recounts an instance in which an “expert” representing a family cost him nine months. Chuck has estimated the business was worth between $3.8-4M. The expert replied, “Well, we need $4.9M to retire, so that’s what we are going with.” After nine months passed and 80-100 buyers had gotten off at numerous stages in the buying process, the seller realized who the problem was and got rid of the “expert” and put his trust in Chuck. A few months later, the business sold, at around (surprise) $4M.

Here, Chuck did like the seller but couldn’t insist that the “expert” be kicked out of the deal. Sometimes, we all have to learn lessons the hard way.

If you’ve got a business to sell and think you can meet these standards, give us a call.

Episode 158 – Unveiling the Power of Exit Planning with Mark Kipp

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We’re joined today by Mark Kipp from Prime Capital. Mark, a seasoned financial professional, who founded the Kansas City Chapter of the Exit Planning Institute (EPI).

Mark shares the formation and growth of the EPI Kansas City chapter, with a mission to share the importance of early planning for business owners aiming for a successful transition and the power of collaboration among financial advisors, CPAs, attorneys, and business brokers.

If you’re a business owner considering selling your business or simply want to maximize its potential, this episode provides essential strategies on preparing your business for any eventuality, ensuring that when it’s time to exit, you’re ready and informed. From navigating tax strategies to building a strong advisory team, discover how proactive planning can significantly benefit your business and secure your financial future.

Tell the Bank Everything (We Mean It!)

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Tell the Bank Everything (We Mean It!)

Photo by Expect Best from Pexels:

“The government can’t loan you money if you already owe the government money,” said Doug Hubler, President of Apex, on a recent podcast episode. What Doug said is part of what we want to cover today, which is full disclosure to your lender in the process of buying a business.

The Bank Is Your Partner

You may be the brains and labor behind this upcoming deal, but the bank is putting up a large part of the money, and as such, they need to know as much about you as possible to justify the loan. You have to remove the idea that the bank “works for you” as you might rightfully consider them when you’re in a regular consumer banking relationship. You are working for each other in a business banking relationship. They give you money, and you ensure that they get that money back, along with some interest.

What to Disclose

As part of the lending process you will sign paperwork attesting to “telling the truth” and not “willfully hiding” any items which may be detrimental to your application. Things you must disclose include:

  • Outstanding loans
  • Outstanding liens
  • Child support in arrears
  • Being party to a lawsuit
  • Declared bankruptcies (even if more than 7 or 10 years in the past)
  • Credit charge-offs (even if more than 10 years in the past)
  • DUI or other similar felonies

As part of their diligence process, the bank is going to find out about any of these if you didn’t disclose them. None of the items above would by themselves, if disclosed, be enough to stop a loan process. However, failure to disclose any of them may (and sometimes has) blown up a deal in progress.

All of the items listed above can be cured in some way before closing:

  • Loans and liens can be paid back or accounted for as part of the transaction
  • Child support can be brought current
  • Terms of the deal can account for the outcome of a lawsuit in relation to the business, if needed
  • Bankruptcies and credit charge-offs can be examined for their severity and distance in the past in relation to the present
  • DUIs and other similar felonies can be contextualized by personal statements along with attestations of character and a period of time (for example, you are unlikely to be approved for a loan if the DUI has happened during the course of the deal).

In a pre-Internet world it might have been reasonable to think that “nobody would find out” about something. But it’s not reasonable to think that way now, and it’s an immature way to approach a business deal, which requires everything to be in the open so everyone can walk away as winners.

Remember, we all have some kind of skeletons in our closets. It’s not the skeletons that are problems, it’s the non-disclosure of said skeletons that is the problem. A big enough problem that it could kill your deal.

Wondering if you have an incurable skeleton in your personal or professional closet? Let’s talk about it.

Know Your Broker: Valerie Vaughn

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In this occasional series, we will share profiles of our team here at Apex so you can get to know the men and women that make us best qualified to help you buy or sell a business.

Valerie Vaughn is a Senior Advisor at Apex Business Advisors, a Kansas City metro firm specializing in guiding owners of privately held companies through confidential sales of their business. With a focus on maximizing value and ensuring smooth transitions, Valerie expertly manages the preparation, marketing, and negotiation phases of each sale.

Valerie’s experience spans diverse industries, including manufacturing, specialty construction contractors, woman-owned businesses, business services, and high-end caterers. Her commitment to professional excellence is demonstrated by her prestigious designations: Master Certified Business Intermediary (MCBI), Certified Mergers & Acquisitions Professional (CM&AP), and Mergers & Acquisition Master Intermediary (M&AMI).

Valerie holds a B.S. from the University of Richmond, an MBA from Rockhurst University, and a Ph.D. from the University of Delaware. Her background includes positions with organizations ranging from Fortune 25 companies to startups, giving her a broad perspective on business needs. Valerie’s passion for ongoing learning and problem-solving ensures her clients receive the highest level of service and expertise.