Build a Real Business Acquisition Strategy Before You Start Looking
Most first-time business buyers make the same mistake: they chase every opportunity instead of the right opportunity.
In this video, Jonathan Jay explains why developing a clear acquisition strategy is essential before you start speaking to business sellers. Without a defined "buy box", it's easy to get distracted by unsuitable businesses — wasting time, energy, and weakening your negotiating position.
Once you know your ideal business, consistent outbound activity — such as sending letters — creates deal flow, confidence and control. When you have options, you negotiate better deals. When you don't, you compromise.
"When you have options, you negotiate better deals. When you don't, you compromise."
The 7 criteria that define the type of business you should be looking for — and the ones you should ignore
How far are you willing to travel? Define your geographic radius and stick to it.
Which sectors do you understand? Stay in your circle of competence or plan how you'll learn.
Set a minimum and maximum. Too small isn't worth it; too large may be out of reach.
Does the business need you day-to-day, or is there a team in place?
Highly regulated industries add complexity. Know what you're willing to take on.
What's your preferred structure? Deferred consideration, earn-outs, or all-cash?
When you have consistent deal flow, everything changes. Here's how the cycle works:
Send letters, make calls, build consistent outreach to business owners
Generate several live opportunities so you're never reliant on a single deal
When you can walk away, you negotiate from strength — not desperation
Better terms, better prices, better businesses — because you chose, not settled
"Finding a business to buy is a numbers game. The more activity you generate, the more options you create, and the better your outcome will be."
