Biz Buyers,

Whether you’re curious or serious about buying an SMB, you’re in the right place. This is where we share some of the best tips, tools, and ideas from inside our small business acquisitions community.

Before we dive in… 1 IMPORTANT thing:

We’re hosting a FREE, live, virtual business-buying training on October 16th. Learn about the roadmap to ownership, how to buy the right business for you, and red flags to watch out for.

Now let’s get down to business.

“Negotiation… is nothing more than communication with results”

- Chris Voss, former FBI hostage negotiator

How to Do Deals Like The FBI

Tips For When You're Ghosted

Since joining the Contrarian Community last year, Mark attended dozens of calls, contributed to countless conversations, and participated in multiple deal reviews.

About a month ago, his long, hard work paid off when he became the owner of a painting franchise (and made it to what we like to call… the starting line).

But now, Mark is facing the business equivalent of a hostage situation. What was supposed to be a smooth transition of ownership has turned into a game of tag with a seller who’s seemingly gone AWOL. For Mark, days can now go by before the seller responds to basic questions over text, like:

Initially, Mark tried to bake in financial incentives to keep the seller engaged during the transition, but ultimately those didn’t pan out, and now he’s paying for it.

“For sure, he may have something going on,” Mark said, “but the transition overall the last month has been tough.”

Here’s the good news

Another community member swooped in with a tip from former FBI hostage negotiator Chris Voss’s book, Never Split the Difference.

The tip: Voss’s golden phrase for when someone you’re negotiating with goes radio silent:

It’s brilliant. You’re reopening the conversation without demanding a response — but you’re also making it awkward for them not to reply. One community member even used it on a friend who had ghosted them for 6 months. “Have you given up on our friendship?” Within a day? Boom — an apology and a full response.

So what could this look like in SMB acquisitions? Well, it could be as simple as, “Have you given up on a smooth transition?” But here’s the key: say nothing else. Let the silence do the talking.

It’s the kind of Jedi mind trick that can get people back to the table. And if it works on actual hostage-takers, who’s to say it can’t help here?

Is That a Business or a Jenga Tower?

Thoughts on Risk Concentration

Imagine riding a unicycle on a tightrope — sure, it looks cool, but one slip and it’s over. In other words, your risk is extremely concentrated. 

Whether it’s all your revenue coming from one client, one employee’s expertise holding the business together, or one product pulling all the weight, risks like these should make prospective buyers sweat. 

You want confidence, not chaos, and too much concentrated risk can be the ultimate confidence killer.

Types of Risk

Customer Risk: If one customer accounts for most of your revenue, you’re not running a business — you’re running a hostage situation. Customer risk is a key concern among smart buyers.

Key Man Risk: If Janet wins the lottery and never shows up again, will your business collapse? Buyers need to watch out for businesses that’ll crumble the moment their “key man” leaves.

Revenue Risk: If your business only offers one product or service, are you a market shift or a new competitor away from being in trouble?

Technological Risk: When that expensive, aging machine you rely on breaks, will your cash flow break with it? (Good luck covering debt payments with a $500K repair bill.)

If you have the resources, skillset, or strategy to mitigate certain risks, you can potentially acquire a business at a better price, round it out effectively, and still build value.

But that’s one hell of a big “if.”

Enough reading.

Here’s how to take action…

Tune in for our FREE, live, virtual business-buying training on October 16th. Learn about a roadmap to ownership, buying the right business for you, and red flags to watch out for.

And if you really want to kickstart your journey, this next thing is insanely fun. Our annual Main Street Over Wall Street conference is probably the MOST unique and impactful event for dealmakers… on Earth. Tickets are nearly sold out, so click to learn more (before they’re gone).

Before you leave, More Cool Stuff:

WATCH: 7 lower-risk business ideas to explore (according to the data)

READ: You'll never guess how the richest self-made woman built her wealth...

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