Everything you need to know about ExitStack and small business acquisitions.
What is ExitStack?
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ExitStack is BizStackHub's free business acquisition toolkit — 10 legal document templates for buying and selling businesses, plus 3 AI-powered tools to estimate valuation, score acquisition readiness, and generate a seller prep checklist. Everything is free with no account required.
What is the Silver Tsunami and why does it matter for business buyers?
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The Silver Tsunami refers to approximately 10,000 baby boomers reaching retirement age every day in the United States. Analysts estimate 12 million small businesses will change hands over the next decade as boomer owners retire. This creates an unprecedented pipeline of acquisition targets — most priced below $2M — for first-time buyers, search fund operators, and strategic acquirers.
Are the ExitStack templates free?
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Yes. All 10 templates (Letter of Intent, Asset Purchase Agreement, Due Diligence Checklists, Seller Disclosure, Non-Compete, Earn-Out, Transition Plan, Business Listing, 90-Day Playbook) are completely free to view, copy, and use as starting frameworks. They are not legal advice — consult a qualified business attorney before signing any acquisition agreement.
How does the AI Business Valuation Estimator work?
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Enter your annual revenue, Seller's Discretionary Earnings (SDE), industry vertical, and owner involvement level. The tool applies industry-standard SDE multiples and revenue benchmarks to generate a low, mid, and high valuation range in about 60 seconds. Multiples vary by industry — retail trades at 2–3x SDE while SaaS can command 4–6x. No signup required.
What is the Acquisition Readiness Score?
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The Acquisition Readiness Score assesses your profile as a buyer across six dimensions: financial capacity, deal experience, industry knowledge, financing access, due diligence capability, and integration planning. It generates a 1–100 score with specific gap analysis and recommendations for each weak area.
Who should use ExitStack?
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ExitStack serves three audiences: Buyers (entrepreneurs searching for their first acquisition, search fund operators, and strategic acquirers), Sellers (business owners preparing for exit in 12–36 months), and Advisors (M&A attorneys, business brokers, CPAs, and financial advisors managing client transactions).
What documents do I need to buy a small business?
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A typical small business acquisition requires: (1) Letter of Intent (LOI) to establish deal terms and exclusivity, (2) Due Diligence Checklist to verify financials and legal standing, (3) Asset Purchase Agreement (APA) as the primary transaction document, (4) Non-Compete Agreement to protect the acquisition, and (5) Transition Plan to ensure operational continuity. ExitStack has free templates for all five.
How long does a small business acquisition take?
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A straightforward asset purchase of a business under $1M typically closes in 60–120 days from LOI signing. The timeline breaks down as: LOI signing (Day 1), due diligence (Days 1–45), financing/SBA loan approval if applicable (Days 30–75), purchase agreement drafting (Days 45–70), and closing (Day 60–120). Complex deals with real estate, equipment, or multiple locations take longer.
What is Seller's Discretionary Earnings (SDE)?
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SDE is the total financial benefit a full-time owner-operator receives from a business annually. It equals net profit plus the owner's salary, personal expenses run through the business, one-time non-recurring costs, and non-cash charges like depreciation. SDE is the standard valuation basis for businesses under $5M in revenue. Most main-street businesses sell at 2–4x SDE.