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May 26, 2025 37 mins

Welcome back to The BDO Show—where business valuations meet cold, hard truths, and nobody sells a cash cow (unless the numbers add up).

This week, we're diving deep into the world of business valuations and the often-suspect financials that come with selling a company. Emily Detor and Ryan Kroge are joined by Ryan Hutchins with Peak Business Valuation, a long-time sponsor and an expert who’s also bought multiple businesses himself using SBA loans.

If you're a BDO, buyer, or seller, you won't want to miss this no-holds-barred discussion on:

  • Why you should never go 50/50 on a Quality of Earnings (QoE)

  • The "new hotness" of QoE reports and how they save deals

  • The red flags of "elevated numbers" and why sellers might be inflating their SDE

  • The shocking truth: people don't care about lying to the IRS

  • What happens when family members are on the payroll (and don't actually work)

  • Why nobody sells a true "cash cow"

  • The essential info every business owner needs to know before valuing their company

  • Why the new SOP changes are actually great for stronger borrowers and better deals

Plus, hear about Kroge's classic boat VIN-swapping discovery and why watching paint dry can actually be entertaining!

👉 Got thoughts on inflated SDEs or shady valuations? Tell us how you really feel in the comments or email us at TheBDOShow@ArtofSBA.com.

📺 Like, subscribe, and hit the bell—because accurate numbers are always in style.


🎙This episode is sponsored by:

SBA Protection SBA Protection Quick Close Life Insurance – the fastest, easiest way to secure the insurance protection your borrower needs for their SBA loan. For more information, visit their website https://sbaprotection.com/ or email Adam Bergen at Adam@SBAProtection.com

ReSquared Finding and engaging small business owners has never been easier. Resquared is the go-to platform for Business Development Officers looking to connect with local business owners—faster and effectively. They help you find the right prospects effortlessly. Schedule a demo today at http://landing.re2.ai/bdo

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