Latest / The Buyer & Seller Podcast with Fexingo: Business Brokers, Exits, and Private Sales Explained
How Debt Service Shapes Business Exit Valuations
We dissect how existing debt obligations transform from a simple balance sheet line item into the primary lever for valuation adjustments in private business sales. Using the specific mechanics of seller financing and SBA loan assumptions, we explain why buyers often demand stricter debt service coverage ratios than lenders do. We break down the math behind leverage multiples and show how high-interest legacy debt can silently erode a company's sale price by thirty percent or more. This is the hidden friction point that separates a smooth exit from a deal that falls apart at closing…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.