0021 - Eight Terms & Acronyms You Need to Know When Buying a Business
Business Buying for Financial Independence
Release Date: 11/11/2025
0022 - The Critical Question Buyers Forget to Ask; From Someone Who Sold Two Businesses
Business Buying for Financial Independence
In this episode, Tim talks with Adam Schaeuble, entrepreneur, podcaster, and mentor who knows firsthand the cost of overwork and the value of building businesses around lifestyle freedom. Adam shares how pushing himself to the point of hospitalization forced him to rethink success, why generational expectations pushed him toward entrepreneurship, and how he balances “enough versus more” in his financial independence journey. He also opens up about his podcasting career, mentoring others in the space, and why creating impact-driven businesses matters more than chasing the biggest paycheck....
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0021 - Eight Terms & Acronyms You Need to Know When Buying a Business
Business Buying for Financial Independence
Tim Delaney breaks down eight of the most common terms you’ll encounter when buying a small business — SDE, EBITDA, LOI, APA, escrow, SBA loans, seller financing, and working capital. If you’ve ever looked at a business-for-sale listing and felt like you were reading another language, this episode is your translator. Tim explains how these terms connect to real valuations and smarter deal-making so you can speak the broker’s language and protect yourself before signing anything. Tim is an entrepreneur who believes everyone should explore the opportunities that business and real estate...
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0020 - Can Canadians Buy Businesses in America?
Business Buying for Financial Independence
In this episode, Tim talks with Paul, a Canadian real estate investor and federal law enforcement officer who’s exploring his first business acquisition. Paul shares how he and his wife successfully invested in U.S. real estate despite being told it was “impossible,” why business ownership feels like the next natural step, and the unique challenges of navigating licensing, brokers, and cross-border deals. From private investigation firms to roofing businesses, Paul unpacks his search process, the importance of seller trust, and why respect for people’s time and relationships matters as...
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0019 - Why An MIT Engineer Left Corporate America to Buy His Own Business
Business Buying for Financial Independence
Michael Castaño is an entrepreneur and acquisition-minded business owner whose journey began with building an acoustic company from the ground up. Through that venture, he learned the realities of managing customers, navigating operations, and wearing every hat that a small business demands. When he later turned toward acquisitions, Michael brought those lessons with him — and discovered that persistence, credibility, and seller trust mattered as much as the numbers on paper. Along the way, he leaned heavily on mentorship and the broader acquisition community, finding that shared...
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0018 - Would You Buy This Laundromat?
Business Buying for Financial Independence
We’ll walk through the real-world process of analyzing a laundromat deal, covering purchase price, cash flow, debt service, seller financing, and how to calculate a realistic return on investment. This solo episode dives into how small adjustments in structure can completely change your cash-on-cash return. Tim is an entrepreneur who believes everyone should explore the opportunities that business and real estate can provide on the path to financial freedom. He owns and operates a wine & liquor store, a software startup, a consulting company, and a growing portfolio of commercial and...
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0017 - How Real Estate Skills Translate to Business Buying
Business Buying for Financial Independence
In this episode, Tim talks with Grant Reigner, a commercial real estate investor and educator who sees powerful parallels between real estate and small business acquisitions. Grant unpacks why the much-hyped “silver tsunami” of baby boomer retirements isn’t as simple as the statistics make it sound, the gap between what’s marketed and what’s actually being bought, and the real challenges of finding operators for smaller service businesses. He also shares how underwriting, community-building, and long-term thinking in real estate have shaped his approach to business buying — and...
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0016 - Why Bigger Deals Are Safer: Tim Kolb on Scaling Wealth Through Business Acquisition
Business Buying for Financial Independence
In this episode, Tim talks with Tim Kolb, an entrepreneur who knows what it’s like to build a business from the ground up—only to realize the cost of chasing growth without balance. Tim Kolb shares the unfiltered story of how he and his wife grew their first business with no formal training, the emotional toll of burnout, and the decision to sell when life demanded a new chapter. He also dives into how that experience reshaped his approach to entrepreneurship and what he’s doing differently in his next ventures. Tim is an entrepreneur who believes everyone should explore the...
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0015 - Hidden Dangers in Business Listings (And How to Spot Them)
Business Buying for Financial Independence
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Business Buying for Financial Independence
In this episode, Tim talks with Brad Cornell, a seasoned entrepreneur and business buyer who brings a no‑nonsense perspective to acquiring and running small businesses. Brad doesn’t sugarcoat the challenges of business ownership—he dives into what it really takes to go from dreaming about buying a business to successfully running one. He shares how his journey reshaped his understanding of financial freedom, why courage and resilience are non‑negotiable, and the mindset shifts that separate successful buyers from those who burn out. Tim is an entrepreneur who believes everyone should...
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0013 - Landing (and Selling!) Multiple Seller Financing Deals
Business Buying for Financial Independence
In this episode, Tim talks with Jason Orr, a real estate investor, business owner, and father of four from South Dakota. Jason shares how his path from buying rental properties led him to acquiring a window cleaning company and eventually a water restoration business. He dives deep into the challenges of seller negotiations, creative financing, and the emotional roller coaster of closing deals. Jason shares how he has used seller financing to purchase and sell busineses. Whether you’re curious about transitioning from real estate to business ownership or want practical insights on small...
info_outlineTim Delaney breaks down eight of the most common terms you’ll encounter when buying a small business — SDE, EBITDA, LOI, APA, escrow, SBA loans, seller financing, and working capital.
If you’ve ever looked at a business-for-sale listing and felt like you were reading another language, this episode is your translator. Tim explains how these terms connect to real valuations and smarter deal-making so you can speak the broker’s language and protect yourself before signing anything.
Tim is an entrepreneur who believes everyone should explore the opportunities that business and real estate can provide on the path to financial freedom. He owns and operates a wine & liquor store, a software startup, a consulting company, and a growing portfolio of commercial and residential real estate.
Tim’s passion for independent business has led him to support dozens of other business owners. For over a decade, he has worked with businesses on strategy, processes, finances, and marketing. These experiences, along with analyzing dozens of other businesses for potential acquisition, have provided Tim with an immense knowledge base to pull from.
Tim has appeared on multiple top-tier podcasts in the financial space, such as Bigger Pockets Money and The Freedom Chasers Podcast.
[00:00 – 00:22] The “Alphabet Soup” Problem
“If you've ever looked at a business listing online and felt like you are reading some secret foreign language… you're not alone.”
Tim sets up the problem—new buyers face a wall of jargon that hides the real meaning of a deal.
[00:22 – 00:58] Why These Terms Matter
Understanding the language of deals helps you avoid costly mistakes and recognize red flags early.
[00:58 – 03:12] Seller Discretionary Earnings (SDE)
What SDE includes, how different people calculate it, and why multiples like 1×–3× SDE determine business value.
[03:12 – 04:37] EBITDA (for Larger Businesses)
Used when an owner isn’t active day-to-day. “EBITDA… earnings before interest, taxes, depreciation, and amortization.”
[04:37 – 06:34] LOI – Letter of Intent
The “informal-formal” agreement outlining price, terms, and exclusivity.
“Think of it like being engaged—you’re not married yet, but you shouldn’t be dating other buyers.”
[06:34 – 07:28] APA – Asset Purchase Agreement
Where the lawyers finalize the actual contract and list what’s included—customer lists, goodwill, equipment, etc.
[07:28 – 08:53] Escrow
Funds held back to ensure promises (like purchase orders or key employees staying) are met after closing.
[08:53 – 09:51] SBA Loans
How SBA 7(a) loans really work: banks issue them, SBA guarantees them, and lenders care most about cash flow.
[09:51 – 11:00] Seller Financing
“When the seller becomes the bank for you.”
Examples of partial financing and why the SBA likes sellers with “skin in the game.”
[11:00 – 12:12] Working Capital
Cash + receivables + inventory = the lifeblood of your new business.
Tim explains why it must be clearly defined in the APA to avoid liquidity traps.
[12:12 – End] Closing Thoughts & CTA
“We’d love to hear what other terms you’ve seen or heard that you aren’t quite sure about!”
If you found value in today’s show, make sure to subscribe so you never miss an episode packed with insights to help you buy and grow a business that creates real financial freedom.
Connect with Tim and the community on social media for more tips and updates:
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Tweetable Quotes
- “Understanding them isn’t just about the jargon. It’s about making smarter deals, avoiding bad deals, and knowing exactly what you’re signing up for.” - Tim Delaney
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“An LOI is kind of like being engaged — you haven’t done the formal wedding yet.” - Tim Delaney
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“Seller financing is when the seller becomes the bank for you.” - Tim Delaney
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“Without working capital, the business will die.” - Tim Delaney