The Importance of Vendor Concentration in M&A Deals
When buyers think about concentration risk, customer concentration usually gets all the attentionāand for good reason. But there’s another type of concentration that can quietly derail operations and increase your post-close risk: vendor concentration. Whether you’re buying a manufacturing company, e-commerce brand, or service-based business, the stability and reliability of the vendor base matters. More […]
Earn-Outs: When They Work and When to Avoid Them
Earn-outs can be a useful tool in M&A negotiationsābut theyāre also one of the most misunderstood and misused. Done right, an earn-out aligns incentives and bridges valuation gaps. Done poorly, it creates tension, distracts from growth, and sparks legal disputes. So how do you know when an earn-out is the right moveāand when itās better […]
What to Expect in the First 100 Days Post-Acquisition
You signed the papers. The wire hit. You officially own the business. Now what? The first 100 days after closing are some of the most critical in the entire acquisition journey. This is when reality meets strategy, when your integration plan gets tested, and when your leadership starts to shape the future of the company. […]
Seller Financing: Risks, Rewards, and Structuring Tips
In small business M&A, seller financing isnāt just commonāitās often essential. For buyers, it reduces upfront capital requirements and aligns incentives post-close. For sellers, it can help bridge valuation gaps and accelerate a deal. But as with any powerful tool, seller financing comes with risks, and the structure matters more than most people realize. In […]
10 Common M&A Myths
If youāre buying your first business, thereās a good chance youāve already run into conflicting advice, outdated assumptions, and well-meaning but misleading hot takes from internet forums or your broader network. The truth is, small business M&A doesnāt work like buying real estate or investing in public stocks. Itās messy, personal, and often more art […]
When to Walk Away From a Deal
If you’re deep into diligence and starting to second-guess things, you’re not alone. Every buyer eventually asks themselves: Is this just cold feet? Or is it time to walk away? In M&A, walking away can feel like failureāespecially if you’ve spent months building a relationship with the seller, racked up legal and diligence costs, or […]
The Buyer’s Guide to M&A Negotiations: Strategies, Structures, and Pitfalls to Avoid
For most acquisition entrepreneurs, negotiating a deal is both exciting and intimidating. It’s where strategy meets psychology ā and where the success of your acquisition can be won or lost. M&A negotiations are about far more than just “price.” Deal structure, risk allocation, timelines, and post-close dynamics all get shaped at the negotiating table. And […]
Why the Bankās Due Diligence Shouldn’t Replace Yours
If youāre financing your deal with an SBA loan or working with a lender to close a business acquisition, chances are youāve heard something along the lines of: āThe bank will do their own due diligence.ā Thatās true. But itās also incomplete. Because hereās the catch: a bankās due diligence isnāt designed to protect you. […]
What Happens After a Quality of Earnings Report?
For many first-time or early-stage acquirers, getting the Quality of Earnings (QoE) report feels like a big milestoneāand it is. But itās also the beginning of the most important conversations in your deal process. If youāre holding a fresh QoE and wondering, āNow what?āāthis guide is for you. Letās walk through what you should do […]
Broker vs. Private Sale: What to Expect (For Buyers and Sellers)
When you’re getting ready to buy or sell a small business, one of the first decisions youāll face is how to approach the deal: work with a broker or go the private route? Both options can work. But the process, the people involved, and the potential pitfalls vary significantly depending on the path you take. […]
How a Skilled Due Diligence Team Protects Your Bottom Line
When evaluating a potential acquisition, having a clear and accurate understanding of the business is crucial. Without the right expertise, itās easy to overlook red flags, miscalculate risks, or even overpay for a business that isnāt as strong as it appears. A solid due diligence team ensures you get the full picture, protecting you from […]
Understanding Add-Backs and How They Impact a Deal
When evaluating a business for acquisition, one of the most critical aspects of financial due diligence is understanding add-backs. These adjustments can make a business look more profitable than it actually is ā or, in some cases, reveal hidden value. Either way, if you donāt know how to analyze add-backs properly, you could end up […]
What to Look Out for Before Submitting an LOI
When evaluating a business acquisition, the period before submitting a Letter of Intent (LOI) is critical. This is your chance to conduct high-level due diligence, assess deal viability, and ensure you’re not about to buy a business held together by duct tape and wishful thinking. Buyers at all levels should approach this stage with a […]
Why Some Deals Fall Apart in Due Diligence and How to Keep Yours on Track
Mergers and acquisitions (M&A) are high-stakes ventures, with nearly half of all deals failing before closing. Research shows that up to 50% of M&A transactions donāt make it to the finish line. The biggest stumbling block? Due diligence. This phase is where financial, legal, and operational realities come to light sometimes derailing deals entirely. But […]
