profile

Welcome to Buyers Black Book

Make sure not to miss any future issues: sign up here!

Featured Post

10 Seller Fears You’re Negotiating Against (Whether You Know It or Not)

Hi Reader I want to talk about a critical skill you need if you want to be a successful buyer who lands solid deals and, more importantly, actually closes them: "Deal Empathy." Here's what it's all about: Most people think deals fall apart because the numbers don’t work. After sitting through enough closings—and just as many deals that never made it there—I don’t think that’s true. In most failed deals I see, the math was fine. The valuation was defensible. The financing was workable. The...

Hi Reader This is important. If you've been reading headlines, then you need to read this issue. There’s a category of risk most business buyers don’t even realize exists. Not a bad seller.Not inflated add-backs.Not a deal that just “didn’t work out.” This is about buying a business that has been systematically overbilling, misbilling, or fabricating revenue—often for years—without the buyer realizing it. The danger isn’t theoretical.It’s active, growing, and concentrated in specific...

THE MOST DANGEROUS “HELP” IN SMB ACQUISITIONS Every week, a buyer sends me the same innocent-sounding question: “The broker sent over their purchase agreement form. They said it’s standard. They said it’ll save time and legal fees. Should we just use it?” This is not a negotiation question. This is a survival question. And the answer is a hard, non-negotiable: No.Not “probably no.”Not “in some cases.” A 100% NO. Because what you’ve just been handed is the deal equivalent of a Trojan Horse —a...

Hi Reader Today I’m going to share a deal structure that’s not for every seller—but when it fits, it can unlock opportunities most buyers never see. It’s not some new universal framework.It’s a niche tactic for a specific kind of off-market owner: They’ve built a solid business, but it’s not “broker-ready.” They’ve thought about retirement, but never made a plan. They don’t need a big payday — the house is paid off, the lifestyle’s comfortable. They’re proud of what they built, a little...

Hi Reader If you've been around business acquisition circles for any period of time you've undoubtedly heard of the "F reorg." It's one of the most powerful buyer tactics but also one of the most misunderstood. After closing upward of 140 deals and helping folks plan many more, I've seen lots of angst about F reorgs: Misunderstanding what it is Bad advice about how to do it Worry about complication Concerns over deal delay Mistakes (including bad ones) when folks other than tax lawyers...

Hi Reader Did you know there's a number more important than "SDE" when it comes to buying a business? That number is "NWC" or Net Working Capital, and whether you don't know what the number is, or you know it but ignore it when structuring your deal, the outcome is the same: You'll run out of money. We're not just talking about running out of money figuratively, but literally. It means you might close on your deal, and technically own a multi-million dollar business, but 30 days in, when you...

Hi Reader Today I’m going to talk about something that comes up frequently in deals I review—seller or key employee dependency. It’s more common than most buyers think, and it’s one of those risks that can quietly derail your first year of ownership if you don’t catch it early. Why should you care? Because you’re not just buying financials. You’re buying continuity.And if the seller (or one key team member) is the glue holding everything together, then you're not buying a system—you’re buying...

The deal looks solid. ✔️ Strong SDE✔️ Clean books✔️ Great reputation Then one line in the CIM rewires your brain: “One customer accounts for 35% of revenue.” Discussions with the seller and your QoE indicate that the issue worsens, with a more accurate estimate of around 50%. You don’t flinch at the numbers.You flinch at the psychology. Because this isn’t just a financial question. It’s existential. 🚫 Most Buyers Walk The common advice? “Too risky. Walk away.” And sometimes, that’s right. But...

Hi Reader Buying a business isn’t just a financial transaction – it’s an emotional rollercoaster for everyone involved. As a mid-career professional seeking control and autonomy through acquisition, you might find that a deal which makes perfect sense on paper suddenly hits the brakes. Why? Sellers often develop cold feet as closing nears. The owner who once was eager to sell may start hesitating, delaying, or even second-guessing the whole thing. This happens because selling a business is...

Hi Reader Here's the dilemma: You’re making great money in a high-powered W2 job, yet you feel trapped. Every Sunday night brings a pit in your stomach. You toggle between gratitude for the paycheck and a quiet longing for autonomy. It’s the golden handcuffs dilemma: a salary, stock options, and comfort—at the cost of control, freedom, and fulfillment. On one hand, walking away seems crazy—who gives up stability and status? On the other, there’s a growing sense that staying might be costing...