From Billion-Dollar Deals to First-Time Entrepreneurs: Top 10 Takeaways on Buying Businesses - What we learned about SMB M&A having interviewed over 250 of the world best in this space:

After interviewing over 250 guests ranging from first-time acquisition entrepreneurs and advisors to serial dealmakers closing transactions worth billions, I’ve distilled ten key insights about the world of business acquisitions. Here’s what I’ve learned:

1. People Matter More Than Money
   This is fundamentally a people business. Emotional intelligence (EQ) and the ability to build deep rapport often outweigh raw intelligence or financial resources. Deals are made—or lost—based on relationships.

2. Preparation Takes Time
   It typically takes 2 to 5 years for a business to prepare for a maximized exit, even with a solid team of advisors. Owners looking to sell should start planning well in advance.

3. Not Every Business is Sellable
   Many small businesses fail to attract buyers because they’re too small, the owner is integral to day-to-day operations, or the financials are in disarray. These issues must be addressed to make a business viable for sale.

4. Do Your Due Diligence
   All skeletons eventually come out of the closet. Conduct thorough due diligence before signing on the dotted line. It’s far better to uncover issues upfront than after you’ve committed.

5. Time and Effort Trump Zero-Down Myths
   Acquiring a business with little to no money down is exceedingly rare. It’s like hunting for a four-leaf clover. You’ll need to sift through hundreds of deals to find such opportunities.

6. The Myth of Passive Income
   Forget the dream of completely hands-off income. While some products or businesses require less oversight, all ventures demand time and energy to succeed.

7. The Right Team is Crucial
   Deals can be made or broken by your team. While owners and buyers are the real MVPs, lawyers, accountants, and other professionals play pivotal roles. Choose wisely—the wrong player can derail everything.

8. This Journey Isn’t for Everyone
   While anyone can pursue business acquisitions, not everyone is suited to it. The search process, often lasting 30-36 months, is a critical learning experience. Rushing it is a recipe for disaster unless you’re already equipped with the necessary skills.

9. Arbitrage Opportunities Abound
   As businesses grow, their valuation multiples increase. Key breakpoints often occur at $2.5–4M EBITDA, $10M EBITDA, and $100M if taking the company public.

10. Understand Deal Structures
    From cash and debt to earnouts and holdbacks, deal structures vary widely. Ensure you understand every term before signing. What’s written in the agreement is what matters—verbal promises rarely hold up after closing.

Whether you’re just starting your acquisition journey or looking to refine your strategy, these lessons offer invaluable guidance. Building relationships, conducting thorough diligence, and approaching each deal with clarity and purpose can make the difference between success and regret.

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Growth & Acquisition - News Newsletter

Attention Business Brokers, Advisors, Acquisition Entrepreneurs, and SMB Owners!

Do you want to stay ahead of the game in the SMB M&A market? The Hub is the solution you need! This curated newsletter brings you the best highlights from blogs, podcasts, YouTube, and news sources, all in one place. Growth & Acquisitions

Founding Member Shout-Out (Still room here -$400 one time)

Shout out to our new founding member. With over 30 years in M&A, this company offers the lowest priced (way undervalued) course on helping you buy good businesses. Very underpriced - get it now before they finish upgrading the site and very likely up the pricing.

Thanks to Sweetview Partners, an Acquisitions company looking to buy Texas-based B2B companies in the $1MM - $30MM revenue range. Click on the logo to check them out.