Most searchers spend too much time on the wrong deals.

Not because they're bad at evaluating businesses — but because they haven't defined what a good deal looks like for them specifically.

The three things that actually matter

Before you look at any listing, you need to be clear on three things:

1. Operator fit
Can you actually run this business? Not theoretically — but given your background, your strengths, and your gaps. A great business in the wrong hands is still a bad acquisition.

2. Business quality
Is the business fundamentally sound? Look for recurring revenue, low customer concentration, and an owner who isn't the product.

3. Deal structure
Even a great business can be a bad deal if the terms don't protect you. Price, seller note, earnout, transition period — these matter as much as the financials.

The mistake most first-time buyers make

They fall in love with the idea of a business before they understand what it actually takes to run one.

The listing says $400k SDE. The broker says it's a great opportunity. The seller says it practically runs itself.

But when you dig in — the owner is in the business every day, the top customer represents 40% of revenue, and the asking multiple assumes growth that hasn't happened yet.

What good diligence looks like

Good diligence isn't about finding reasons to walk away. It's about understanding exactly what you're buying — so you can make a confident decision either way.

Start with the gaps. What don't you know? What hasn't been explained? What feels off?

Then work backwards from the risks. If that top customer leaves, what does the business look like? If the owner stays for 90 days and then exits, what breaks?

The goal isn't a perfect business. The goal is a business you understand well enough to run.