This 1 Thing Has Never Been More Valuable For Biz Buyers

Biz Buyers,

This is where we share some of the best tips, tools, and ideas from inside our SMB acquisitions community.

“Risk comes from not knowing what you’re doing.”

-Warren Buffett

How to Make Risk Your B*tch

There’s a reason Buffett always looks cool, calm, and collected — it’s because the man knows what the hell he’s doing.

Buyers, if you’re sweating bullets, it’s probably because you’re driving blind.

People always ask us, “How can we entirely remove the risk from a deal.” That’s like asking how to go swimming… without any water. Ain’t possible, bud.

There’s no such thing as no risk. Risk always exists. But it’s exacerbated by not knowing what you’re doing.

Fortunately, this is a workable problem if you ACTUALLY do the work (and put in the time). One of our members put it perfectly:

The goal is to learn how to take smart action the right way, so this isn’t you in the middle of a $1.2M negotiation for a roofing company:

The real play is to learn what you’re doing — to learn it cold — then put it to practice.

Risk is dangerous, but it’s also a lever for opportunity. The more you know, the less you gamble. And when you shift from gambling to strategizing, your risks become calculated.

So, how do biz buyers make risk their b*tch? They master the game. Slowly at first…

…Then all at once.

This 1 Thing Has NEVER Been More Valuable For Biz Buyers

Right now, recurring revenue matters more than ever for business buyers and sellers in our community. Here’s why you need to be thinking about it:

• Predictability: Businesses with recurring revenue streams (subscriptions, service contracts) are more stable, particularly in economic downturns.
  
• Valuation Premium: Businesses with a higher % of recurring revenue are commanding higher multiples.
  
• Growth Leverage: With predictable income, you can more confidently access capital and reinvest in expansion, staff, or tech.
  
• AI Buffer: In a changing landscape, recurring revenue can provide a buffer against market shifts and tech disruption in your industry.

If a business doesn’t have recurring revenue, ask yourself where you can build it in. It will help you sleep better at night. Business buyers pay for predictability, not volatility.

But here’s the thing… While recurring revenue is key, at the end of the day:

Revenue is vanity. Cash flow is sanity.

The more you learn about business, the more you'll be impressed by profitability, not necessarily revenue. But when you’re first getting started, it’s not so simple...

It’s critical not to get distracted by top line. Pull back the curtain. Focus on metrics that tell you about:

• Profitability
• Liquidity
• Stability

A shiny facade means nothing if the foundation is cracked.

How This Magician Used Acquisition to Turn an Expense into an Asset

After 2 decades as a magician, Alex Ramon knew how to sell, build a brand, and capture an audience. But he wanted ownership and needed the right path to get there with his unique skill set.

Looking at his biggest business expenses, one stood out: merchandise. Every year, he spent thousands stocking up on shirts, hats, and other branded products for his shows.

So he decided to buy a business in the merchandise industry, turning an ongoing cost into a potential cash-flowing asset.

The deal took 18 months, a near miss, and an unexpected second shot, but today he's hard at work scaling the 13-employee company.

How he did it — and what you can steal from his playbook — right here. 👇

Read his story HERE

The information contained here may not be typical and does not guarantee returns. Background, education, effort, and application will affect your experience. Your results will likely vary.