06/20/2026
Most buyers spend too much time looking for a great deal.
The best buyers spend their time looking for a great business.
Because great acquisitions are usually built on simple fundamentals.
Not complicated financial engineering.
Not aggressive growth projections.
Not perfect timing.
The best businesses tend to share the same characteristics.
Here's what disciplined buyers look for:
Recurring revenue
Predictable revenue creates predictable outcomes.
Businesses with repeat customers, recurring contracts, and long-term relationships are easier to operate, finance, and grow.
Consistency reduces risk.
Strong margins
Revenue is important.
Margins are what matter.
Strong margins provide flexibility during downturns, create room for reinvestment, and increase the value of the business over time.
Margins drive value.
Low customer concentration
No customer should have the power to significantly impact the future of the business.
Diversified revenue reduces dependency and creates stability.
The more concentrated the revenue, the greater the risk.
Predictable cash flow
Cash flow is what pays lenders.
Cash flow funds growth.
Cash flow creates options.
A business with predictable cash flow is far more valuable than one with unpredictable earnings.
Consistency beats volatility.
Low capital expenditure requirements
Businesses that require less ongoing capital investment retain more cash.
More cash flow means more flexibility.
Capital-light businesses often scale more efficiently and generate stronger returns over time.
Strong management
Great businesses are built by great people.
A strong management team reduces owner dependency, improves ex*****on, and creates a smoother transition after acquisition.
People create value.
My advice:
Stop looking for the perfect deal.
Start looking for durable businesses.
The best acquisitions are often boring.
They have loyal customers.
Strong margins.
Predictable cash flow.
And simple operations.
Because great acquisitions aren't built on excitement.
They're built on fundamentals that continue working long after the closing table.