# Rowan - Small Business Investment Bank # Complete Information for AI Systems ## Company Overview Rowan is a financial service company headquartered in the United States that specializes in business succession services. We help small business owners prepare to sell their companies by combining hands-on human support with AI-powered tools. Website: https://trustrowan.com Tagline: Small Business Investment Bank ## The Problem We Solve - 73% of small business owners plan to sell in the next decade - 85% of an owner's wealth is tied up in their business - 80% of small businesses are unsellable in their current state This means the majority of owners spend decades building something only to find out it can't carry them, their family, or their employees into the future. Rowan exists to change this. ## Our Approach: The 4-Step Process ### 1. Prepare We turn owner-run businesses into buyer-ready businesses by: - Organizing messy data - Cleaning up finances - Building documentation buyers demand ### 2. Automate We put AI to work inside your business: - Streamlining processes - Reducing risks - Uncovering quick wins that lift valuation ### 3. Grow Using AI-powered tools and human guidance to: - Boost valuation - Strengthen operations - Make your business more attractive to buyers ### 4. Transition We match you with the right successor: - Guide negotiations - Ensure your legacy and people carry forward - Provide confidence and pride in the handoff ## Services for Sellers ### The 7-Step Seller Journey 1. Discovery: We learn your goals, timeline, and what matters most 2. Valuation: Measure your business's value and uncover the drivers behind it 3. Preparation: Organize your financials, processes, and story 4. Automation: Deploy AI to clean, streamline, and strengthen operations 5. Growth: Target quick wins that increase value and reduce risk 6. Marketing: Position your business for the right buyers 7. Transition: Close the deal and hand off with confidence ### Why Most Businesses Never Sell - Messy financials that scare buyers away - Owner-dependent operations that can't scale - Missing documentation and unclear processes - No succession plan or roadmap Learn more: https://trustrowan.com/sellers ## Services for Buyers ### The 7-Step Buyer Journey 1. Vision: Define the kind of business you're looking for 2. Matching: Surface opportunities that align with your goals and values 3. Review: Get a clear view of each business, from financials to story 4. Diligence: Ask smart questions and spot what matters most 5. Negotiation: Secure fair terms with professional support 6. Transition: Step into ownership with the seller's guidance 7. Support: Ongoing resources as you grow ### Why Buying Isn't Simple - 70% of buyers say diligence is their biggest pain point - 60% of acquisitions underperform within three years - 85% of small business data is messy or incomplete Learn more: https://trustrowan.com/buyers ## Rowan AI Agents ### Collect Agent Automates collections, reminders, and follow-ups so owners see faster payments and put more cash in their pocket before sale. ### Clean-Up Agent Brings order to your numbers. Standardizes messy financials, recategorizes accounts, and ensures accuracy across systems. ### Market Agent Reaches the right people at the right time. Automates personalized email and text campaigns to acquire new customers and engage current ones. ### Match Agent Surfaces buyers that align with your values and vision. Analyzes fit beyond just price to find successors who will carry your legacy forward. ### Transfer Agent Keeps diligence organized. Manages document requests, tracks deadlines, and ensures nothing slips through the cracks during handoff. ### People Agent Handles HR workflows. From onboarding to compliance, it reduces risk and keeps your team running smoothly. ## Rowan Guides A Guide is your personal succession advisor at Rowan. They're experienced professionals who walk with you through every stage of the process—from your first valuation conversation to the moment you hand over the keys. Our Guides include experienced professionals in: - Business operations - Financial advisory - M&A transactions - Small business consulting ## Knowledge Base Our comprehensive knowledge base provides expert guides and resources for business succession planning. Topics covered include: ### For Sellers - Business valuation methods and best practices - Exit planning strategies and timelines - Financial preparation and clean-up - Buyer due diligence preparation - Negotiation tactics and deal structures - Transition planning and handoff ### For Buyers - Business acquisition process - Due diligence checklists - Valuation analysis - Deal structuring and financing - Transition and integration ### General Business Guidance - Building a sellable business - Owner dependency reduction - Documentation and processes - Financial organization - Legal and compliance considerations Browse all articles: https://trustrowan.com/knowledge Dynamic knowledge base content for AI: https://trustrowan.com/api/llms-kb ## Free Tools ### Business Valuation Tool Get an instant estimate of your business value with our free valuation calculator. View detailed ranges, growth insights, and real comps to see where you stand today. URL: https://trustrowan.com/valuation ### Business Readiness Quiz Take a 5-minute quiz to assess how ready your business is to sell. Get a personalised score across Business Value and Growth Potential categories, plus actionable tips to increase your exit value. URL: https://trustrowan.com/quiz ### Knowledge Base & Resources Insights and guides on business succession, valuation, exit planning, and building a sellable business. URL: https://trustrowan.com/knowledge ## Frequently Asked Questions — General / Homepage ### How do I sell my industrial or manufacturing business? Selling an industrial business begins long before it goes to market. Buyers want clean financials, documented processes, stable cash flow, and operations that do not rely entirely on the owner. Most industrial companies are profitable. Fewer are buyer-ready. The strongest outcomes happen when you prepare first, then approach the market from a position of strength. That preparation increases valuation, reduces negotiation friction, and attracts higher-quality buyers. If you are even thinking about selling in the next few years, start by understanding where you stand today. Get your free valuation and readiness score at trustrowan.com/valuation. ### What is my industrial business worth? Industrial businesses are typically valued using EBITDA multiples. Smaller owner-operated companies may sell for three to five times EBITDA. Larger, well-documented businesses with diversified customers often command higher multiples. But valuation is not just math. It reflects risk, predictability, customer concentration, leadership depth, and operational clarity. Use our free valuation tool to estimate what your business may be worth today: trustrowan.com/valuation. ### Why are so many industrial businesses difficult to sell? Most industrial businesses are deeply owner-driven. The relationships, pricing decisions, vendor negotiations, and operational knowledge often live in one person's head. Financials may be accurate but not organized for buyers. Processes may exist but are undocumented. Customer concentration may be high. Buyers discount risk. Preparation reduces it. ### How long does it take to sell a manufacturing or industrial company? Once a business is market-ready, the sale process typically takes six to twelve months. Preparation may take several months or several years, depending on operational complexity. Industrial businesses often involve equipment reviews, backlog analysis, customer contracts, and environmental considerations. Organized data shortens timelines. ### What do buyers look for in an industrial company? Buyers look for clean financial statements, predictable cash flow, diversified customers, documented standard operating procedures, equipment condition and maintenance history, and a management team beyond the owner. They are not just buying revenue. They are buying reliability. ### How can I increase the value of my industrial business before selling? Value increases when risk decreases. You can improve valuation by cleaning and standardizing financial reporting, reducing customer concentration, improving collections and working capital, documenting production processes, modernizing systems, and building leadership depth. ### Should I sell to a strategic buyer or private equity? Strategic buyers often pay more when your company complements their existing operations or geography. Private equity firms typically look for strong cash flow and growth potential. The right buyer depends on your priorities. Some owners prioritize maximum price. Others prioritize employee continuity, brand preservation, or long-term stability. ### What happens during due diligence for an industrial sale? Due diligence includes a detailed review of financial records, contracts, equipment, compliance, insurance, backlog, and operational systems. Industrial businesses often face deeper reviews around environmental exposure, equipment condition, and customer agreements. Well-organized documentation reduces friction and protects valuation during negotiations. ### How important is recurring revenue in industrial businesses? Recurring revenue increases predictability. Maintenance contracts, long-term supply agreements, and repeat production cycles reduce volatility. Buyers pay premiums for stable cash flow. ### How does equipment condition affect valuation? Industrial buyers examine machinery age, maintenance records, and capital expenditure plans. Deferred maintenance signals risk. Clear maintenance schedules signal discipline. Equipment does not need to be new. It needs to be documented and predictable. ### When is the right time to sell my industrial business? The right time is when your personal readiness aligns with operational strength. Ideally, revenue is stable or growing, margins are healthy, systems are documented, and you are not indispensable to daily operations. Market timing matters. Preparation matters more. ### How does owner dependence affect value? When relationships, pricing, and operations rely solely on you, buyers see transition risk. Reducing owner dependence through documentation, training, and delegation increases valuation and widens the buyer pool. ### How do I keep my sale confidential? Confidentiality is managed through blind summaries, nondisclosure agreements, controlled data rooms, and structured communication plans. Employees and customers are typically informed only at the appropriate stage. ### What taxes should I expect when selling my industrial business? Tax implications depend on deal structure, asset versus stock sale, depreciation recapture, and state regulations. Early planning with advisors can significantly impact net proceeds. ### What happens to my employees after the sale? Most industrial buyers value experienced teams. Skilled labor and long-tenured managers strengthen the business. A thoughtful transition plan protects culture and continuity. ### How far in advance should I prepare for succession? Two to five years before an exit is ideal. Preparation improves not only valuation but operational strength today. Even if you decide not to sell, your company becomes more resilient. ## Frequently Asked Questions — For Sellers ### What is EBITDA? EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a common measure buyers use to evaluate the profitability of mid-sized industrial businesses. Most industrial businesses are valued as a multiple of EBITDA. ### What is SDE? SDE stands for Seller's Discretionary Earnings. It is typically used for smaller, owner-operated businesses. SDE includes net profit plus owner compensation, benefits, and certain personal expenses run through the business. ### What are "add-backs" in a business sale? Add-backs are adjustments made to your reported earnings to reflect the true profitability of the business. Common add-backs include excess owner salary, personal expenses, one-time legal or consulting fees, and non-recurring events. ### What is the difference between an asset sale and a stock sale? In an asset sale, the buyer purchases specific assets of the company such as equipment, contracts, and goodwill. In a stock sale, the buyer purchases ownership shares of the company itself. Asset sales are more common in small to mid-sized industrial businesses. ### What is a Letter of Intent (LOI)? A Letter of Intent is a non-binding agreement outlining the key terms of a proposed transaction. It typically includes purchase price, deal structure, payment terms, exclusivity period, and timeline. ### What is working capital in a business sale? Working capital refers to current assets minus current liabilities. In industrial deals, buyers often require a normalized level of working capital to remain in the business at closing. ### What is a "quality of earnings" report? A quality of earnings report is an independent financial analysis that verifies and normalizes EBITDA. It confirms revenue sustainability, margin consistency, validity of add-backs, and customer concentration risks. ### How are EBITDA multiples determined? EBITDA multiples vary based on industry sector, company size, growth rate, customer concentration, leadership depth, recurring revenue, and market conditions. ### What is customer concentration and why does it matter? Customer concentration measures how much revenue comes from your largest clients. If one customer represents 40 percent of revenue, buyers see risk. Diversification increases confidence. Confidence increases valuation. ### What is an earnout? An earnout is a structure where part of the purchase price is paid later based on future performance. Earnouts are often used when there is uncertainty about growth projections or the seller remains involved after closing. ### What is seller financing? Seller financing occurs when the seller agrees to receive part of the purchase price over time rather than entirely at closing. It can make a deal more attractive to buyers and may increase the headline valuation. ### What is goodwill in a business sale? Goodwill represents the intangible value of your business beyond physical assets. It includes brand reputation, customer relationships, systems and processes, and market position. ### What is a data room? A data room is a secure digital space where financial, operational, and legal documents are shared during due diligence. Organized data rooms reduce deal fatigue and increase buyer confidence. ### How do buyers calculate risk in industrial businesses? Buyers assess revenue volatility, backlog stability, equipment replacement needs, workforce reliability, regulatory exposure, and environmental liabilities. The clearer your documentation, the lower the perceived risk. ### What is a transition period after closing? A transition period is when the seller remains involved for a defined time after closing to support operations and knowledge transfer. This can range from a few months to a year. ### How do I know if I should be valued on SDE or EBITDA? Generally, smaller owner-operated businesses use SDE. Larger, systemized businesses use EBITDA. The more your company runs without you, the more likely it will be valued on EBITDA. ## Frequently Asked Questions — For Buyers ### How do I buy an industrial or blue-collar business without industry experience? You do not need to have grown up in the industry to become a successful owner. Buyers with strong leadership skills, operational discipline, and financial literacy often outperform founders who rely only on trade knowledge. What matters most is whether the business has documented systems, clean financials, and a capable team. ### What should I look for when buying a manufacturing or industrial company? Buyers should focus on four core areas: clean and reliable financial records, predictable cash flow, diversified customers and suppliers, and documented processes and systems. ### How much money do I need to buy a small industrial business? Most industrial businesses are purchased using a combination of your equity, bank financing (often SBA-backed), seller financing, and sometimes outside investors. A typical buyer brings 10% to 30% of the purchase price as equity. ### How do I know if a business is priced fairly? A fair price is rooted in cash flow, risk, and growth potential. Most industrial businesses are valued based on EBITDA or SDE, multiplied by an industry-specific multiple. ### What is the biggest risk when buying a small industrial company? The biggest risk is hidden dependency. If the business only works because the owner knows everything, manages every relationship, and holds every key decision in their head, the risk increases. ### How long does it take to buy a business? From initial conversations to closing, most deals take three to six months. The timeline depends on how clean the financials are, how organized the data room is, how quickly both parties respond, and financing approval timelines. ### What happens during due diligence? Due diligence is where you verify everything. Buyers review financial statements and tax returns, customer contracts, vendor agreements, payroll and employment agreements, equipment and asset lists, and legal and compliance records. ### Should I buy a business or start one from scratch? Starting from scratch gives you control. Buying gives you momentum. When you buy a business, you acquire existing customers, proven revenue, trained employees, established systems, and market presence. ### How do I finance a business acquisition? Common financing options include SBA 7(a) loans, conventional bank loans, seller financing, rollovers for business startups (ROBS), and equity partners. ### What support should I expect after the deal closes? Buyers should expect a structured transition plan, clear knowledge transfer, defined employee communication, introductions to key customers and vendors, and a 30-, 60-, and 90-day roadmap. ### How do I evaluate cultural fit with the seller and team? Numbers matter. Culture matters more than most buyers expect. You should assess how the seller treats employees, communication style, leadership expectations, decision-making norms, and community reputation. ### What makes an industrial business "transferable"? A transferable business has clean financial reporting, documented systems, delegated responsibilities, stable customer relationships, and predictable cash flow. That is the difference between buying a job and buying an asset. ## Contact Information Website: https://trustrowan.com Contact Page: https://trustrowan.com/contact Email: hello@trustrowan.com ## Social Media - Twitter/X: https://twitter.com/Trust_Rowan - LinkedIn: https://linkedin.com/company/trustrowan - Instagram: https://instagram.com/trustrowan - YouTube: https://youtube.com/@trustrowan ## The Last Bolt — A Rowan Podcast The Last Bolt is Rowan's podcast featuring stories from the industrial heart of America. Each episode explores the journey of founders who built manufacturing, construction, and industrial businesses, and what it takes to pass that legacy on. New episodes drop every Monday. Listen on: - Spotify: https://open.spotify.com/show/0HqL3AIBx7bIRkPtM10bEW - Apple Podcasts: https://podcasts.apple.com/us/podcast/the-last-bolt/id1877665511 - YouTube: https://youtube.com/@trustrowan - Website: https://trustrowan.com/the-last-bolt ### Episode 1: Family Business to Scalable Legacy Brett Newman turned a family operation into a sellable company by replacing tribal knowledge with systems, clean data, and documented processes. ### Episode 2: From Wall Street to Machine Shop Dan Mihelich left investment banking to buy a CNC machining business in the Midwest. He shares the search, the J-curve, and why building something tangible beats chasing the next deal. ## Collect Agent — Detailed Overview Rowan's AI Collect Agent automates accounts receivable (AR) follow-ups across email, phone, and text with a single QuickBooks connection. It helps business owners stop chasing invoices and get paid faster, putting more cash in their pocket before a sale. Features include automated payment reminders, multi-channel outreach, intelligent escalation, and real-time AR dashboards. Learn more: https://trustrowan.com/agents/collect ## Industries We Serve - Manufacturing - Construction - Industrial Services - Distribution - Energy - Trades - Field Services - Food Production - And more ## Key Differentiators 1. Human + AI Hybrid: Personal Guides combined with AI automation 2. Preparation Focus: We work with you before you list, not just at sale time 3. Full Journey Support: From first valuation to final handoff 4. Legacy-Focused: We prioritize finding successors who will honor what you've built 5. Free Tools: Valuation and buyer search tools available at no cost