Introduction: A Different Kind of Due Diligence Support
Small Business Financial Intelligence (SBFI) takes a unique approach in the due diligence and business analysis space. Rather than offering traditional due diligence reports or Quality of Earnings analyses, SBFI focuses on custom financial modeling and one-on-one consulting. Their mission is to help business owners and buyers understand the financial future of a business before making critical decisions.
Led by Michael Dorsey, who brings over 30 years of financial analysis experience, SBFI operates more like a personal financial consultant than a typical due diligence firm. This distinction is important to understand before engaging their services, as what they offer is genuinely different from what most firms on the VerSquare directory provide.
Firm Overview
Key Facts
- Founder and Lead Consultant: Michael Dorsey
- Experience: 30+ years of financial analysis
- Core Service: Custom financial modeling for small businesses
- Approach: One-on-one consulting with personalized financial models
- Delivery: Electronic spreadsheet models customized to your business
- Focus: Forward-looking financial intelligence and decision-making tools
How SBFI’s Process Works
SBFI follows a structured, iterative process that sets them apart from firms that deliver a static report. Understanding this process is key to evaluating whether their services are right for you.
Step 1: Initial Meeting
The engagement begins with an introductory conversation where SBFI explains their financial modeling methodology. This is your opportunity to ask questions and understand exactly how their electronic spreadsheet models work and how they will be customized to your situation.
Step 2: Discovery Discussion
SBFI conducts a comprehensive review of all aspects of the business. For buyers, this means analyzing the target company’s current financial situation and assessing future objectives and goals. The firm promises that “no stone is unturned” during this phase.
Step 3: Ongoing Discovery
This is where SBFI’s approach really differentiates itself. Rather than a one-time analysis, they conduct weekly meetings to sift through the company’s financial data and operations. During these sessions, all business drivers are uncovered and reviewed. Primary and secondary drivers are identified based on the owner’s or buyer’s perspective and installed in the model as adjustable levers.
Step 4: Model Delivery
The final deliverable is a customized Decision Support Model, which is essentially an interactive financial model that allows you to adjust key business drivers and see how changes affect financial outcomes. This is not a static PDF report but rather a living tool you can use long after the engagement ends.
Strengths of Small Business Financial Intelligence
- Deep Personalization: Every engagement is fully customized. Unlike firms that run your numbers through a standard template, SBFI builds each model from scratch based on the specific drivers and dynamics of the business you are evaluating. This level of customization means the output is directly relevant to your decision-making.
- Interactive Financial Models: The Decision Support Model is a powerful tool for business buyers. Instead of receiving a static report that says “the business earned X last year,” you get an interactive spreadsheet where you can model scenarios. What happens if revenue drops 10%? What if you increase prices by 5%? What if you add a new product line? These are the kinds of questions the model can answer.
- 30+ Years of Experience: Michael Dorsey’s three decades of financial analysis experience bring deep knowledge to every engagement. This kind of seasoned expertise is particularly valuable when dealing with unusual business models or complex financial structures.
- Ongoing Relationship: The weekly meeting structure means you are not just buying a document. You are buying ongoing access to an experienced financial analyst who is deeply familiar with your specific deal. This consultative approach can be invaluable for first-time buyers who need guidance throughout the evaluation process.
- Forward-Looking Focus: While traditional due diligence looks backward at historical performance, SBFI’s modeling is inherently forward-looking. For buyers, the future performance of the business is what ultimately matters, and SBFI’s models are designed to help you project and plan for that future.
- Educational Component: SBFI emphasizes helping clients understand their financial models, not just receive them. The one-on-one consulting approach means you will learn to read and use the financial tools, building your own financial intelligence in the process.
Potential Limitations to Consider
- Not Traditional Due Diligence: This is the most important caveat. SBFI does not provide traditional due diligence reports or Quality of Earnings analyses in the format that SBA lenders and investors typically expect. If your lender requires a formal QoE report, SBFI’s financial modeling service will not satisfy that requirement. You would need to engage a separate firm for the QoE.
- Solo Practitioner Model: The firm appears to be primarily a solo consulting practice led by Michael Dorsey. While this means you get direct access to the principal, it also means limited capacity, no team of specialists to draw upon, and potential availability constraints.
- No CPA or Accounting Firm Backing: SBFI is a financial modeling consultancy, not a CPA firm. Their deliverables do not carry the weight of a CPA-attested report, which some lenders and transaction counterparties may require.
- Time-Intensive Process: The weekly meeting structure and iterative discovery process means engagements take longer than a typical due diligence report. If you are on a tight deal timeline with an LOI expiration approaching, this process may not fit your schedule.
- Limited Online Presence and Reviews: Compared to larger firms, SBFI has a more limited public profile, making it harder to evaluate their track record through third-party reviews or case studies.
- Scope Definition: Because the service is so customized, the scope and cost may be harder to predict upfront compared to firms that offer defined due diligence packages with clear deliverables and pricing.
Who Is SBFI Best Suited For?
- Business buyers who want to deeply understand the financial mechanics of a target company before acquiring
- Owners evaluating whether to sell their business and wanting to understand its true financial potential
- Buyers who already have a QoE report from another firm but want additional financial modeling to plan post-acquisition operations
- First-time buyers who benefit from one-on-one financial education and mentoring
- Situations where scenario planning and sensitivity analysis are critical to the investment decision
- Buyers planning significant operational changes post-acquisition who need to model the financial impact
How GoSBA Loans Complements SBFI’s Financial Modeling
Because SBFI’s services are different from traditional due diligence, the integration with GoSBA Loans looks a bit different too. Here is how the two work together:
- 50+ Lender Network: GoSBA Loans connects you with the right SBA lender from over 50 approved institutions. While SBFI’s financial models help you decide whether to buy, GoSBA ensures you can actually get the financing to close.
- $320 Million+ Funded: GoSBA’s experience with over $320 million in funded loans means they understand exactly what documentation lenders need. They can tell you upfront whether you will need a formal QoE report in addition to SBFI’s financial modeling.
- Free Service: GoSBA does not charge borrowers anything. Since you may be investing in SBFI’s custom modeling and potentially a separate QoE report, having free loan brokerage helps manage your total acquisition cost budget.
- Free Business Plan ($2,500–$5,000 Value): GoSBA provides a complimentary SBA-ready business plan. Combined with SBFI’s financial models, you would have both a lender-ready business plan and sophisticated financial projections for your own decision-making.
The Recommended Approach
For buyers using SBA financing, we recommend the following approach: Start with GoSBA Loans to understand your lender’s specific documentation requirements. Get your free business plan from GoSBA. If you need a formal QoE report, engage a CPA firm for that. Then, if you want deeper financial modeling to guide your post-acquisition strategy and operations, engage SBFI for their custom Decision Support Model. This layered approach gives you everything you need for both the lending process and your own investment decision-making.
Final Verdict
Small Business Financial Intelligence offers something genuinely different from the typical due diligence firm. Their custom financial modeling and one-on-one consulting approach provides business buyers with powerful decision-making tools and a deep understanding of the financial dynamics of their target company. Michael Dorsey’s 30+ years of experience adds significant credibility to the engagement.
However, SBFI is not a substitute for traditional due diligence or a Quality of Earnings report. Buyers pursuing SBA-financed acquisitions will almost certainly need a formal QoE from a CPA firm in addition to whatever financial modeling SBFI provides. Think of SBFI as a complement to, not a replacement for, standard due diligence.
For the most comprehensive acquisition preparation, pair SBFI’s modeling expertise with a CPA-prepared QoE report and GoSBA Loans’ free financing and business plan services.
Need help navigating the SBA loan process for your acquisition? Contact GoSBA Loans today for a free consultation, complimentary business plan, and access to 50+ SBA lenders.
