Seeking Advice: Building Financial Acumen

searcher profile

April 21, 2025

by a searcher from University of Washington in Seattle, WA, USA

Hi Searchfunder community, I'm actively preparing to acquire a small business and want to sharpen my financial acumen to ensure I'm making smart, confident decisions throughout the process. My background is in strategy and operations, and while I understand business fundamentals, I’d like to go deeper in areas like: Analyzing financial statements Understanding deal structures and valuation Cash flow forecasting and modeling Diligence best practices I'd love recommendations on: - Courses (online or in-person) - Books or resources that helped you -- I've read Buy then Build and HBR, I'm looking for more financial literacy books. - Meetups or groups where I can connect with others on the same path - Any frameworks or tools you rely on during acquisition If you’ve gone through this journey, I’d appreciate any advice you’re willing to share—especially on what actually moved the needle for you. Thanks in advance!
1
18
159
Replies
18
commentor profile
Reply by a searcher
from University of Texas at Austin in Fort Worth, TX, USA
For legal (and somewhat financial) due diligence, I highly recommend How to Buy a Business without Being Had: Successfully Negotiating the Purchase of a Small Business. It is pretty technical and can be a tough read, but just one idea in there may return the $ and time 1,000x over. Lot of really good stuff. For post-close financial acumen, I would suggest 60 Minute CFO: Bridging the Gap Between Business Owner, Banker, and CPA Deal structure, valuation, and modeling is a little nebulous and more opinion-driven than fact-driven imho. My background was investment banking and private equity, so I originally created a super detailed model for my first acquisition... But it was horribly inaccurate and unhelpful in hindsight. Now, my view is that if the acquisition doesn't make sense with back of the envelope math (e.g. conservative revenue and margin assumptions + debt service), then it's probably not worth doing. As you get further down the income statement, it gets harder and harder to forecast, and you will be wildly wrong with unforeseen bottlenecks or setbacks. If you plan to finance through the SBA, most SBA lenders should give the exact template of what they need, which you can figure out as you go.
commentor profile
+16 more replies.
Join the discussion