Ready to Start Your SMB Acquisition Journey? Here’s Your 5-Step Guide!

In partnership with

👋 Hey fellow searchers,

Starting your SMB acquisition journey can feel overwhelming, but with the right steps, you can move forward confidently. Here’s a step-by-step guide to launching a focused and productive search that puts you on the path to finding the right business. Let’s get started! 🕵️‍♂️

1. Define Your Ideal Business Profile

Knowing exactly what you’re looking for is foundational to a successful search. Be specific about your industry, location, and financial targets, as well as the type of financing you’re comfortable with. Here’s how to shape your profile:

• Industry: Choose sectors where you have experience or a keen interest.

• Location: Decide if you want to stay local, move states, or even try to managing remotely (not recommended at first).

• Financial Goals: Set ranges for purchase price, revenue, and seller’s discretionary earnings (SDE) to quickly screen opportunities.

• Financing Strategy: Understand your financing options upfront. Seller financing, SBA loans, and partnerships with investors are all common in SMB acquisitions. Defining these criteria helps narrow down your search to feasible opportunities.

Pro Tip: For a practical framework to shape your acquisition goals, check out Sam Rosati’s “Big 3, Little 2” model.

2. Establish Your Search Foundation

Laying a strong foundation will save you time and keep your search organized. This includes choosing a search name, setting up a basic website, creating a domain email, and getting a CRM in place.

Key Steps:

• Create a Search Name: Avoid terms like “Capital” to prevent questions about your funding sources. Keep it professional and approachable.

• Set Up an LLC: For legal protection, establish an LLC to manage liabilities, including those tied to signing NDAs during the search. Most states make this easy to handle directly through their websites without needing an attorney.

• Make a Simple Website and Domain Email: Build credibility with a professional website. Keep it friendly (a family or pet photo works well) and include your “why.” For email, choose a short, memorable domain since you’ll use it frequently.

• Get a CRM: Use a CRM to track contacts and outreach. A good free option is available from SMB Center.

Pro Tip: Adding experienced advisors to your website, especially if you’re young, can build credibility and reassure brokers and sellers of your serious intent.

3. Sourcing Deals: Go Beyond the Obvious Channels

An effective search strategy goes beyond browsing listings. Use online marketplaces, connect with brokers, and reach out directly to business owners for off-market deals. Make sure to add all connections to your CRM to stay organized.

Top Sourcing Channels:

• Marketplaces: Sites like BizBuySell, BizQuest, and Kumo provide a range of listings.

• Broker Relationships: Brokers often have exclusive listings and early access to new deals. Use resources like the International Business Brokers Association (IBBA) to find reputable brokers in your target area.

• Direct Outreach: Reach out to business owners for off-market deals, which can often come with less competition and better terms.

Pro Tip: Set automated searches on these marketplaces for new listings that match your criteria. Adding contacts to your CRM helps you keep track of conversations and follow up regularly.

4. Assemble Your Deal Team and Update Your Online Presence

Getting the right advisors in place early will make your search smoother. This team will handle complex parts of the acquisition, from legal paperwork to financial analysis. Start with these core roles:

Popular Recommendations:

• Quality of Earnings (QoE): @JermanMichael

• SBA Lender: @sbabmarks

• Insurance Advisors: @MrJoshFro + @andyharbut

• Tax Advisors: @BoilerPlateCPA + @smbtaxattorney

• Legal Team: @SMB_Attorney + @KHendersonCo

For additional trusted recommendations, explore the resources at SMB Center.

Update Your Social Profiles: Make sure your LinkedIn and other socials reflect your SMB acquisition intentions since brokers and owners will likely research you. Be strategic about what information you share if you’re currently employed and need confidentiality.

5. Create a Disciplined Process and Start Networking

Consistency is essential. Setting up a structured search routine and committing to networking will help you gain momentum and establish credibility with brokers and sellers.

Process Tips:

• Set Weekly Goals: Define targets, such as evaluating five businesses per week and reaching out to three brokers. Document all outreach in your CRM.

• Stay Focused: Assess each business against your criteria to avoid getting sidetracked by opportunities that don’t align.

• Make Real Connections: Reach out to brokers directly with calls rather than emails to build rapport. Take every opportunity to network, whether it’s dropping off coffee at broker offices, attending industry events, or engaging at local happy hours.

Pro Tip: Start calling brokers now. Don’t wait for the “perfect” moment or “ideal” time—each conversation builds familiarity and credibility, which will pay off when good opportunities come up.

Final Thoughts

Your SMB acquisition journey is a marathon, not a sprint. By setting a solid foundation, leveraging multiple sourcing channels, and keeping a disciplined search process, you’ll build momentum and be ready when the right opportunity appears. Remember, patience and persistence are your allies.

A Quick Message From Our Sponsor 

The Daily Newsletter for Intellectually Curious Readers

• We scour 100+ sources daily

• Read by CEOs, scientists, business owners and more

• 3.5 million subscribers

Sign up today!

Rate Today’s Issue

DISCLAIMER: This newsletter is for informational purposes only and should not be considered financial advice. It offers analyses of businesses without endorsing any specific financial actions. Readers are advised to do their own research and consult a professional before making investment decisions.