The Role of Recurring Expenses in Evaluating Profitability
Recurring expenses are the silent killers—or stabilizers—of profitability. I’ve seen deals where recurring costs were underestimated, leading to serious cash flow issues. That’s why I always dig into recurring expenses during due diligence. In this article, I explain how I analyze these costs, why they matter more than one-time expenses, and how they shape the true profitability of a business.
How I Think About Vendor Relationships in Acquisitions
Vendors are often overlooked in acquisitions, but they play a critical role in stability and growth. I’ve learned to study vendor relationships carefully—evaluating terms, reliability, and concentration risks—because they directly impact margins and operations. In this article, I share how I approach vendor relationships during due diligence and why they can make or break a deal long-term.
Why I Study Industry Cycles Before Committing to a Deal
Industry cycles often decide whether a deal becomes a success or a struggle. I’ve learned to study demand patterns, seasonality, and broader economic cycles before committing to a purchase. In this article, I share why understanding cycles matters, how I evaluate them in different industries, and why timing can be just as important as valuation in making smart acquisitions.
The Role of Employee Retention in Acquisition Success
Retaining employees after an acquisition is one of the most important factors in long-term success. I’ve seen great businesses fail simply because key people left during transitions. In this article, I share why employee retention matters so much, how I evaluate retention risks during due diligence, and the steps I take to keep teams engaged after closing a deal.
How I Approach Negotiating Seller Transition Periods
Transition periods are some of the most delicate parts of acquisitions. Sellers often underestimate the importance of staying involved long enough to transfer relationships, knowledge, and credibility. In this article, I share how I negotiate seller transition terms, balance timelines with incentives, and ensure that the business doesn’t lose momentum during the critical handover phase.
Why I Focus on Transferable Value in Every Deal
A business isn’t truly valuable if it only works with the current owner. That’s why I focus on transferable value in every deal. I study whether systems, processes, and customer relationships can survive and thrive without the founder. In this article, I share how I evaluate transferable value, why it shapes what I’m willing to pay, and how it protects long-term success after acquisition.
The Questions I Ask to Test Customer Loyalty Before Buying a Business
Customer loyalty is one of the best indicators of business strength. Before buying a company, I ask specific questions to test how loyal the customer base really is—because revenue without loyalty can disappear fast. In this article, I share the questions I rely on, what answers reveal about customer retention, and how loyalty impacts the price I’m willing to pay.
The Difference Between Buying a Job and Buying a Business
Too many acquisitions are really just buying yourself a job. I’ve learned that a true business has systems, scalability, and value that extends beyond the owner’s daily involvement. In this article, I explain the difference between buying a job and buying a business, how I test for transferable value, and why the distinction shapes the deals I pursue.
How I Decide Whether to Keep or Replace Existing Management After a Purchase
One of the toughest calls after buying a business is deciding whether to keep or replace existing management. I’ve learned to evaluate not just skills, but also alignment with culture, systems, and long-term goals. In this article, I share my framework for making this decision, how I assess leadership fit, and why getting it right is critical to post-acquisition success.
The First 90 Days: How I Stabilize a New Acquisition
The first 90 days after buying a business are the most critical. I focus on stabilizing cash flow, earning employee trust, and strengthening operations before chasing growth. In this article, I share the exact steps I take in the first three months, why these actions set the tone for long-term success, and how they protect the business during a fragile transition period.
Why I Believe Culture Is More Important Than Strategy in Acquisitions
I’ve seen great strategies fail because the culture wasn’t aligned. In acquisitions, culture drives whether employees stay, systems work, and customers trust the transition. Strategy sets direction, but culture determines execution. In this article, I share why I prioritize cultural fit over strategy in every deal and how it shapes the long-term success of my acquisitions.
The First Questions I Ask When Meeting a Seller
The first meeting with a seller sets the tone for the entire acquisition process. I’ve learned that asking the right questions early uncovers motivations, potential risks, and whether the seller is truly aligned with me as a buyer. In this article, I share the first questions I always ask, why they matter, and how they help me decide if it’s worth moving forward.