THE RAB REPORT
From the Desk of Ralph A. Bellizzi

Issue No. 1 | March 2026
A Monthly Strategic Briefing for Business Owners
Sales from $1M–$10M | $10M–$250M+

Why I’m Writing This Newsletter

Since 1979, we have represented business sellers nationally and internationally.

After 45 years as a business owner and investment banker, I have learned that markets shift, valuations fluctuate, and capital tightens. But persistence, determination, preparation, and a focus on clients’ best interests remain constant advantages.

We are in a disciplined market. That is not a negative statement—it is reality. Disciplined markets reward disciplined operators.

This monthly briefing will provide direct observations and practical guidance for owners operating between $1M and $100M in revenue.

Market Signal: The “Inspection Cycle”

Capital is available. Private equity firms hold substantial dry powder. Strategic acquirers remain active.

However:
• Underwriting is tighter
• Quality of Earnings reviews are deeper
• Customer concentration is scrutinized
• Add-backs are challenged
• Documentation is expected—not optional

In prior years, enthusiasm moved deals forward. Today, clarity and quality do.

Disciplined markets reward disciplined operators.

What Buyers Are Doing Right Now

• Third-party Quality of Earnings is now standard
• Deeper review of customer contracts and renewals
• More conservative debt assumptions
• Increased scrutiny of EBITDA adjustments
• Focus on management depth beyond the founder

Recent Examples:
• $28M manufacturing company → 12% retrade (undocumented add-backs)
• Professional services firm → 1.5x multiple reduction (42% customer concentration)

Inspection-ready companies command premiums. Unprepared companies invite renegotiation.

Tactical Move of the Month

Build Your Readiness File

If you anticipate a sale within the next 12–36 months, preparation should begin now.

Your Readiness File should include:
• Three years of clean financial statements
• Revenue breakdown by top 10 customers
• Defined roles of key personnel
• Documented operating procedures
• Clear normalization of non-recurring expenses

When diligence begins, time compresses—preparation protects leverage.

In aviation, altitude provides options. In transactions, preparation provides leverage and higher value.

Preparation is force multiplication.

Strategic Window

The U.S. entrepreneurial economy remains strong, supported by population growth, an educated workforce, and active sectors including aerospace, defense, construction, advanced manufacturing, professional services, healthcare, IT, and energy transition.

For companies between $1M and $100M in revenue, 2025–2027 may represent a strategic window—but only for those prepared for inspection or serious about a sale.

Let’s Connect

If you would like to understand:
• What your company may command in today’s market
• How buyers are valuing businesses in your sector
• Whether your company is inspection-ready
• How we can support your sale or expansion

Simply reply to this email or schedule a call.

Until Next Time,

Ralph A. Bellizzi
Chairman & President
Aaron Bell International
Veteran Owned | Since 1979

Schedule a 30-Minute Inspection Call
https://aaron-bell.com/contact.html