ReVera Capital

08/19/2026

DSCR: One Number Buyers Should Understand

With the new SBA updates coming out, it seems like a great time to talk about what DSCR is!

When you’re looking at financing an acquisition, one of the key metrics lenders will evaluate is Debt Service Coverage Ratio (DSCR).

Put simply, DSCR measures whether the business generates enough cash flow to comfortably cover its debt obligations. A stronger DSCR can make a business more attractive to lenders and can play an important role in determining how much debt a buyer can support.

For business buyers, understanding DSCR early in the process can help you:
• Better understand your borrowing capacity
• Identify potential financing challenges early
• Evaluate whether a business can realistically support the proposed debt
• Structure an acquisition with the lender’s requirements in mind

At ReVera Capital, we help buyers evaluate the financials, financing options, and overall structure of an acquisition before they get too far down the road.

Thinking about buying a business? Let’s talk about what the numbers really mean.

08/17/2026

SBA Changes Coming October 1, 2026: What Buyers Need to Know

If you’re considering using SBA financing to acquire a business, the rules are changing October 1, and some of the biggest changes affect how your deal will be evaluated.

Here are three we’re paying close attention to:

📊 DSCR Requirements
For certain business acquisitions, the SBA is increasing the minimum Debt Service Coverage Ratio to 1.25x. In practical terms, the business needs to generate sufficient cash flow to comfortably support the proposed debt, not just enough to make the payments.

🔎 Quality of Earnings Reports
For certain acquisitions of $3 million or more, a Quality of Earnings (QoE) report will be required. This provides a deeper look at the quality and sustainability of the company’s reported earnings and gives the lender greater confidence in the cash flow being used to support the loan.

🤝 Seller Consulting Periods
The new rules provide greater flexibility for sellers to remain involved after closing, allowing for consulting periods of up to 24 months in certain circumstances. This can be particularly valuable when the seller’s relationships, knowledge, or operational expertise are important to a successful transition.

The bigger takeaway for buyers?

SBA financing is becoming more focused on the quality, sustainability, and transferability of the business being acquired. That makes strong financial analysis, thorough due diligence, and a well-structured transition plan more important than ever.

At ReVera Capital, we help buyers evaluate opportunities from the initial search through financing, due diligence, negotiation, and closing.

08/13/2026

M&A Simplified

"If someone signs an NDA, confidentiality is guaranteed."

Not exactly.

An NDA is an important legal tool.

But confidentiality in an M&A process relies on much more than a signed document.

It depends on:

• Buyer quality
• Process controls
• Information staging
• Data room management
• Communication discipline

Experienced advisors know that confidentiality is actively managed throughout a transaction.

A signature alone doesn't eliminate risk.

The lesson: Confidentiality is a process, not a piece of paper.

08/11/2026

M&A Simplified

Things No One Tells You About Buying a Business #4

Many first-time buyers assume they need millions in cash to acquire a business.

Often, they don't.

Many acquisitions are completed using a combination of:

• Buyer equity
• SBA financing
• Seller financing
• Working capital

The challenge isn't simply getting approved.

The lender is evaluating:

✔ Historical cash flow
✔ Debt coverage
✔ Industry risk
✔ Buyer qualifications
✔ Business stability

Strong businesses don't automatically qualify.

And weak businesses rarely become financeable through creative structuring alone.

The lesson: The best financing strategy starts long before you approach a lender.

08/10/2026

Check out our most recent blog: Why Most Business Acquisitions Never Make it to Closing.

We'd love to know your thoughts!

ReVera Capital is an experienced investment bank specializing in buying and selling businesses. Trusted partner for smooth and successful business transitions.

08/06/2026

M&A Simplified

Things No One Tells You About Buying a Business

Most people think buying a business is all about negotiating the deal.

In reality, finding the right business is often the hardest part.

A buyer may review dozens (or even hundreds) of opportunities before finding one worth pursuing! Many businesses never make it to market. Others look great on paper but fall apart after a deeper review.

The challenge isn't buying a business.

The challenge is finding a business that:
✔ Fits your criteria
✔ Has a motivated seller
✔ Produces reliable cash flow
✔ Is financeable
✔ Matches your skills and goals

The best buyers spend more time sourcing and evaluating opportunities than negotiating purchase agreements.

The lesson: Don't underestimate the search process. The acquisition often starts months, or years, before the closing table.

07/07/2026

Things No One Tells You About Buying a Business #1

Buying a business is not purely a financial transaction.

For sellers, it may represent decades of work, sacrifice, and identity.
For buyers, it may be the largest financial commitment they've ever made.
That creates emotions.

Fear.
Excitement.
Doubt.
Frustration.

Many deals that appear logical on paper become difficult because people, not numbers, are involved.

The most successful buyers understand that relationship management is just as important as financial analysis.

The lesson: Deals close when both sides feel understood, not just when the math works.

06/05/2026

Many first-time buyers make a critical mistake when acquiring a business...they assume the business broker is there to help them evaluate the opportunity.

In reality, brokers and buy-side advisors serve very different roles in a transaction.

Neither role is inherently better, but understanding who represents whom can significantly impact the quality of opportunities you pursue, the advice you receive, and ultimately the success of your acquisition.

In our latest blog, we break down:
• What a business broker actually does
• What a buy-side advisor does
• Why the distinction matters
• How buyers can better position themselves for a successful acquisition

Read the full article here:

ReVera Capital is an experienced investment bank specializing in buying and selling businesses. Trusted partner for smooth and successful business transitions.

06/03/2026

💡 M&A Simplified - Normalized EBITDA in real terms

Buyers want to know:
“What does this business earn in its natural state?”

That means:
Removing personal expenses
Adjusting unusual items
Showing repeatable earnings

📌 Normalized EBITDA isn’t creative, it’s honest.

05/28/2026

💡 M&A Simplified - Scalability explained

Scalability isn’t about size, it’s about leverage.

Buyers look for:
Systems that handle growth
Margins that expand
Processes that don’t break

📌 If growth requires proportional pain, buyers will discount it.