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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.

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):

  1. Submit an interest form on an online listing whether through the broker's web site or an online marketplace
  1. 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)
  1. Sign NDA before receiving detailed financials
  1. Request last 3 years of tax returns (if you can get them) and financial statements
  1. Ask for monthly profit/loss statements to check growth and seasonality, balance sheets to compare cash position and accounts receivable aging
  1. Get customer/supplier concentration data (>25% concentration is risk)
  1. Keep an eye on industry specific licenses and experience required
  1. Informally verify claims about growth potential
  1. Analyze customer and supplier relationships
  1. Evaluate employee structure and key personnel
  1. Review all contracts, leases, and licenses
  1. Visit the business location (if physical)
  1. Meet with the owner for detailed discussions
  1. 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

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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.