The Role of Seasonality in Small Business Cash Flow
Seasonality can make a business look stronger or weaker than it really is. I’ve seen buyers overlook seasonal swings, only to face cash crunches later. That’s why I always analyze how seasonality affects revenue, expenses, and liquidity before acquiring a business. In this article, I share how I evaluate seasonality and factor it into my acquisition strategy.
The Role of Industry Relationships in Post-Acquisition Growth
Post-acquisition growth doesn’t happen in a vacuum—it happens through relationships. From vendors to industry peers, I’ve learned that strong connections accelerate growth, protect against risks, and open opportunities I wouldn’t have found alone. In this article, I explain why industry relationships are one of the most powerful levers in post-acquisition success.
The Importance of Customer Diversification in Small Business Acquisitions
I’ve seen businesses look strong on paper but collapse because they relied on just a handful of customers. That’s why I always study customer diversification before buying. In this article, I explain how overdependence on a few clients creates fragility, how I evaluate customer mix in due diligence, and why diversification is one of the most important factors in sustainable acquisitions.
Why I Study Lease Agreements Carefully Before Buying a Business
Lease agreements can hide risks that sink a deal. From rent escalations to restrictive clauses, I’ve learned to study every detail before buying a business. In this article, I share how I evaluate leases during due diligence, what red flags I watch for, and why they often play a bigger role in acquisition outcomes than most buyers expect.
Why I Always Stress-Test Cash Flow Before Closing a Deal
Numbers on paper can look perfect—until reality hits. That’s why I always stress-test cash flow before closing any deal. I model different scenarios, test downside risks, and make sure the business can survive unexpected challenges. In this article, I explain my process for stress-testing, why it protects me as a buyer, and how it ensures long-term success after acquisition.
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.
The Importance of Understanding Working Capital in Small Business Acquisitions
Working capital is one of the most misunderstood parts of small business acquisitions. I’ve seen deals fall apart—or become unprofitable—because buyers didn’t fully understand the timing of receivables, payables, and inventory. In this article, I share why working capital matters, how I evaluate it in due diligence, and why it’s essential for ensuring long-term liquidity and stability.
The Most Common Red Flags I See in Small Business Deals
Not every deal is what it seems on the surface. Over time, I’ve learned to spot recurring red flags that warn me a small business may not be worth buying. From hidden customer concentration issues to messy financials, I share the warning signs I watch for in every deal—and how catching them early has saved me from expensive mistakes.
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 Evaluate Recurring Revenue Models in Small Businesses
Recurring revenue models are one of the strongest indicators of long-term business health. When I look at small business acquisitions, I pay close attention to whether income is repeatable, predictable, and resilient to market shifts. In this article, I share how I evaluate recurring revenue models, why they matter so much for stability, and how they influence the price I’m willing to pay.