Finding A Business To Acquire

Finding A Business To Acquire
On-market and off-market deals — figure out which approach fits you.
What Deal Type Is Right For You?
On-Market Deals
These deals are publicly advertised, often through brokers, and involve multiple potential buyers. They offer a transparent process with readily available information, but also face intense competition and potentially higher price multiples.
Off-Market Deals
These deals are negotiated directly with the seller, often bypassing brokers. They can provide lower price multiples and greater flexibility, but require extensive research and relationship building. They can also be riskier due to limited information.
Can I do both?
Yes! If you've got the time and resources, it would behoove you to try both and see which fits your needs. 
Finding Deals , Getting Information, and Initial Diligence
Professional Intermediaries
Business brokers and M&A advisors can help match you with opportunities that fit your criteria. Search for business brokers local to you, review their deals on their web site or on online marketplaces such as BizBuySell, or use an aggregator like withkumo.com (the subscription is worth it).
Online Marketplaces
Popular resources like BizBuySell.com, BusinessBroker.net, and Axial offer a wide range of listings. 
Larvato
List of 800+ Websites For Buying and Selling Businesses - Larvato
We have curated a list of platform websites, where you can explore high-quality businesses for sale or list your business opportunity.
Off-Market Deals
The Industry Expert Approach
The Network Infiltration Method
The Digital Presence Hack
The Local Data Mining Technique
The Reverse Inquiry Strategy
Questions to Ask Before Contacting:
Is the asking price within market multiples for the industry? Usually 2-4x (larger businesses in attractive industries can go for 4-7x EBITDA)
Does the location match your target market?
What's the owner's involvement level and transition plan?
Are there clear growth opportunities?
What skills/experience would you need to run this business?
Initial Contact Process & Preliminary Diligence (2-3 weeks):
Submit an interest form on an online listing whether through the broker's web site or an online marketplace
Follow up repeatedly in any way possible to get hands on NDA and provide any additional information (I usually include proof of funds or a pre-qual letter from a bank, along with a 1-page profile on me and why I'm interested)
Sign NDA before receiving detailed financials
Request last 3 years of tax returns (if you can get them) and financial statements
Ask for monthly profit/loss statements to check growth and seasonality, balance sheets to compare cash position and accounts receivable aging
Get customer/supplier concentration data (>25% concentration is risk)
Keep an eye on industry specific licenses and experience required
Informally verify claims about growth potential
Analyze customer and supplier relationships
Evaluate employee structure and key personnel
Review all contracts, leases, and licenses
Visit the business location (if physical)
Meet with the owner for detailed discussions
Research market conditions and competition
The Industry Expert Approach
1
Choose Your Niche
Select 1-2 specific industry niches based on your background and expertise.
2
Create Valuable Content
Develop LinkedIn articles, YouTube videos, and guest posts showcasing your industry knowledge.
3
Network Strategically
Attend industry-specific events and join relevant associations to build connections.
4
Focus on Problem-Solving
Build trust by offering solutions rather than overtly seeking acquisitions.
The Network Infiltration Method
Industry Suppliers
They often have insider knowledge on struggling businesses and retirement plans.
Key Customers
Aware of the competitive landscape and potential exit opportunities.
Service Providers
Accountants, lawyers, and insurance agents with valuable connections.
The Digital Presence Hack
Industry-Specific Blog
Create case studies, analyze trends, and offer solutions to common challenges in your target industry.
Professional Podcast
Interview successful owners and share insights to build credibility through association.
Social Media Strategy
Establish thought leadership on LinkedIn, monitor industry trends on Twitter, and share behind-the-scenes content on Facebook/Instagram.
The Local Data Mining Technique
Building Permits
Identify expanding businesses and owners investing in growth.
Property Records
Track business property ownership and identify aging owners.
Local Business Publications
Monitor executive changes and company milestones.
Chamber of Commerce Data
Access member directories and track business anniversaries.
PPP Database
Download directly from publicly available sites and parse to find targets. You can even back into revenue and company size based on how much funding they got.
Lead Gen Tools
Apollo, ZoomInfo, etc.
The Reverse Inquiry Strategy
1
2
3
1
Create Seller-Focused Content
2
Develop Strategic Partnerships
3
Host Educational Events
Position yourself as the obvious buyer by providing valuable resources and connections to potential sellers. This approach attracts opportunities rather than chasing them.
Quick Action Checklist
Set Up Alerts
Create news alerts for target industries and businesses to stay informed. Google Alerts or built in alerts on Kumo or BizBuySell, etc.
Build Your Profile
Establish an industry expert profile on LinkedIn and join key associations. Build a 1-pager that showcases who you are, what you're looking for, why you're uniquely a fit, and how you're going to get a deal done.
Network Actively
Schedule 5 networking meetings per week and develop relationships with 10 key brokers and/or suppliers.
Create Content
Start an industry-focused blog/newsletter and plan your first educational event.
Meet With Lenders
If you're a fit for this program, you're probably going to secure an SBA loan. That means reaching out to lenders and getting pre-qualified so brokers and sellers take you seriously. Reach out if you need help!
Next Steps to Success
1
Choose Your Industry
Select a primary target industry to focus your efforts.
2
Implement Strategies
Execute one strategy completely before moving to the next.
3
Track and Analyze
Monitor all activities and results to optimize your approach.
4
Build Systems
Develop systems to maintain consistency in your efforts.
5
Join Our Community
Connect with us for support and guidance on your journey.