Ep. 17- How to Evaluate Revenue Quality and Working Capital in SMB Acquisitions

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The SMB Investor

Nick Bryant

24 episodes

2 days ago

Forget startups. Forget climbing the corporate ladder. The real path to wealth? Owning profitable small businesses. Hosted by Sean Smith and Nick Bryant, The SMB Investor dives into how investors, operators, and dealmakers are building wealth through small business acquisitions, syndicates, and holding companies. We talk to the pros—fund managers, investors, searchers, and service providers—who are making SMB investing the next big asset class. Whether you want to invest, operate, or build your own holding company, this podcast is your playbook.

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Ep. 17- How to Evaluate Revenue Quality and Working Capital in SMB Acquisitions | Caleb Basile

The SMB Investor

20 minutes 42 seconds

3 months ago

Ep. 17- How to Evaluate Revenue Quality and Working Capital in SMB Acquisitions | Caleb Basile

In this episode, Sean Smith (Managing Partner at Search Fund Ventures and CEO of SMB Investor Network) sits down with Caleb Basile, CPA and founder of QoE Prep, a firm specializing in fast-turnaround buy-side Quality of Earnings (QoE) reports for the lower-middle market.Caleb breaks down what investors and operators *really* need to understand about revenue quality, working capital, and cost structure when evaluating a small business acquisition. He shares frameworks for assessing recurring revenue, customer concentration, revenue recognition, and the risks of owner-driven sales. Caleb also highlights red flags in working capital manipulation and the most common missteps in gross margin diligence.Whether you’re an investor backing searchers or a buyer diving into diligence, this is a must-watch breakdown of how financial quality drives deal outcomes.👉 Subscribe for more interviews like this.💬 Leave your takeaways or questions in the comments.🛜 Connect with Caleb:- Caleb Basile LinkedIn: https://www.linkedin.com/in/qoeprep/- QoE Prep: https://qoeprep.com/quality-of-earnings- Contact Caleb: caleb@qoeprep.com🛜 Connect with SMB Investor Network:- Sean Smith LinkedIn: https://www.linkedin.com/in/sean-smith-47ab2a70/- SMB Investor Network: https://www.smbinvestornetwork.com/