What do you think?
Rate this book
HBR Guide to Buying a Small Business
Think big, buy small. Are you looking for an alternative to a career path at a big firm? Does founding your own start-up seem too risky? There is a radical third path open to You can buy a small business and run it as CEO. Purchasing a small company offers significant financial rewards―as well as personal and professional fulfillment. Leading a firm means you can be your own boss, put your executive skills to work, fashion a company environment that meets your own needs, and profit directly from your success. But finding the right business to buy and closing the deal isn't always easy. In the HBR Guide to Buying a Small Business , Harvard Business School professors Richard Ruback and Royce Yudkoff help
320 pages, Paperback
First published January 17, 2017
834 people are currently reading
2112 people want to read
Ratings & Reviews
Friends & Following
Create a free account to discover what your friends think of this book!
Community Reviews
Displaying 1 - 30 of 92 reviews
May 31, 2017
Impressively detailed for such a small book. But some issues are glossed over, which I think would have been nice to dig deeper into, such as purchasing a C-corp. Still, very informative. Some notable quotes:
“The ability to organize yourself and focus on what is important is critical to success.” (p. 24)
“Ask yourself, Can I calmly work through the inevitable cycles? Can I learn from my mistakes and move on? Can I retain more joy from the ups than misery from the downs? To be successful, you’ll need to keep working through the emotional swings.” (p. 25)
“You should look for what may seem to be a dull business: One that has the same customers from year to year and is growing slowly—a business that is what we call enduringly profitable.” (p. 80)
“Avoid businesses in which your work would be so irreplaceable that the company would be worth nothing when you decide to leave.” (p. 90)
“As you search, don’t get so excited about a particularly attractive prospect that you devote all your time to it and stop sourcing new prospects. Most exciting prospects eventually become far less exciting: Perhaps you learn that the historical results are much weaker than originally represented, or perhaps the prospect has lost several large customers, or perhaps you and the seller cannot negotiate agreeable terms of the sale. Whatever the reason, sometimes it takes months to eliminate a prospect. If you stop sourcing, you’ll have to restart sourcing. The restart will take a month or two, needlessly delaying the successful conclusion of your search. It is much better to maintain your sourcing momentum and add new prospects every day up to the day that you finally close on the small company you acquire.” (p. 96)
“Thus, the importance of being unimportant: If the small business you buy provides something that only makes up a small portion of its customers’ expenses, then those customers are much less likely to switch to other suppliers.” (p. 129)
“Most owners learn about the true value of their business during the sales process, and first-time sellers are almost always disappointed.” (p. 152)
“We think you should be especially cautious of young, healthy sellers who face no external compulsion to sell.” (p. 156)
“If the 2011 results were sustainable, Randy reflected, Zeswitz was a fabulous prospect. But he wondered if assuming that the future would be like the company’s best year would make this projection too optimistic. So he computed the company’s average margins as well.” (p. 171)
“The full offer price of the acquisition is rarely paid all at once. A key component of the other terms of the offer is seller debt [which creates an economic incentive for the seller to help the business succeed after its sale.” (p. 180)
“Generally, non-compete agreements with sellers are four or five years long.” (p. 198)
“Truthfulness is a habit—if a seller has covered up one thing, it is likely that the seller has covered up other things that you haven’t found.” (p. 213)
“You absolutely must speak to customers to learn the strengths and weaknesses of the company, to confirm current industry trends, and to validate your business plan for the company.” (p. 222)
“The ability to organize yourself and focus on what is important is critical to success.” (p. 24)
“Ask yourself, Can I calmly work through the inevitable cycles? Can I learn from my mistakes and move on? Can I retain more joy from the ups than misery from the downs? To be successful, you’ll need to keep working through the emotional swings.” (p. 25)
“You should look for what may seem to be a dull business: One that has the same customers from year to year and is growing slowly—a business that is what we call enduringly profitable.” (p. 80)
“Avoid businesses in which your work would be so irreplaceable that the company would be worth nothing when you decide to leave.” (p. 90)
“As you search, don’t get so excited about a particularly attractive prospect that you devote all your time to it and stop sourcing new prospects. Most exciting prospects eventually become far less exciting: Perhaps you learn that the historical results are much weaker than originally represented, or perhaps the prospect has lost several large customers, or perhaps you and the seller cannot negotiate agreeable terms of the sale. Whatever the reason, sometimes it takes months to eliminate a prospect. If you stop sourcing, you’ll have to restart sourcing. The restart will take a month or two, needlessly delaying the successful conclusion of your search. It is much better to maintain your sourcing momentum and add new prospects every day up to the day that you finally close on the small company you acquire.” (p. 96)
“Thus, the importance of being unimportant: If the small business you buy provides something that only makes up a small portion of its customers’ expenses, then those customers are much less likely to switch to other suppliers.” (p. 129)
“Most owners learn about the true value of their business during the sales process, and first-time sellers are almost always disappointed.” (p. 152)
“We think you should be especially cautious of young, healthy sellers who face no external compulsion to sell.” (p. 156)
“If the 2011 results were sustainable, Randy reflected, Zeswitz was a fabulous prospect. But he wondered if assuming that the future would be like the company’s best year would make this projection too optimistic. So he computed the company’s average margins as well.” (p. 171)
“The full offer price of the acquisition is rarely paid all at once. A key component of the other terms of the offer is seller debt [which creates an economic incentive for the seller to help the business succeed after its sale.” (p. 180)
“Generally, non-compete agreements with sellers are four or five years long.” (p. 198)
“Truthfulness is a habit—if a seller has covered up one thing, it is likely that the seller has covered up other things that you haven’t found.” (p. 213)
“You absolutely must speak to customers to learn the strengths and weaknesses of the company, to confirm current industry trends, and to validate your business plan for the company.” (p. 222)
January 3, 2018
I heard the authors being interviewed and thought they had some good perspective on business, so I ordered their book.
I wasn't expecting much.
After all, I have built, bought and sold a number of businesses over the past 20 years, and have read plenty of garbage from people who either don't know the reality of running a business or raising capital or are regurgitating some get-rich-quick garbage they read....
But this book was very different. From the very start, it lays out a structure and approach that not only makes sense in theory but also in practice. Stuff that I wish I knew this 20 years ago. Things that, quite frankly, I'm not sure I want my prospective competitors finding out from reading a book.
The chapter, "Enduring Profitable Small Businesses" contains more wisdom that almost any business book I have read. Anybody looking to buy any business, of any kind, should first read this chapter. Then read the book.
I wasn't expecting much.
After all, I have built, bought and sold a number of businesses over the past 20 years, and have read plenty of garbage from people who either don't know the reality of running a business or raising capital or are regurgitating some get-rich-quick garbage they read....
But this book was very different. From the very start, it lays out a structure and approach that not only makes sense in theory but also in practice. Stuff that I wish I knew this 20 years ago. Things that, quite frankly, I'm not sure I want my prospective competitors finding out from reading a book.
The chapter, "Enduring Profitable Small Businesses" contains more wisdom that almost any business book I have read. Anybody looking to buy any business, of any kind, should first read this chapter. Then read the book.
June 27, 2017
A solid, yet detail-sparse overview on purchasing a small company. The authors provide a high-level timeline and overview of the search, diligence, and acquisition phases, highlighting important and not-so-obvious considerations at each step. The book is a helpful, perhaps necessary, read for anyone looking to purchase an existing small business.
However, the book is light on details and can be repetitive at times. Many sections and paragraphs are simply previews or reviews of other sections in the book. Detailed accounting, legal, etc information is probably outside the scope of this book, but a slightly deeper dive would have added considerable detail to the text without sacrificing clarity.
However, the book is light on details and can be repetitive at times. Many sections and paragraphs are simply previews or reviews of other sections in the book. Detailed accounting, legal, etc information is probably outside the scope of this book, but a slightly deeper dive would have added considerable detail to the text without sacrificing clarity.
September 26, 2025
Anybody can become an entrepreneur through acquisition—it just takes willingness.
Despite not having a business background, the material was pretty accessible until part five where they discussed completing a preliminary due diligence, raising capital, negotiating a purchase agreement. It seems like a substantial amount of figure-dense documents are needed for this part of the process to transpire.
I was largely motivated to read this book to augment a conversation amongst a couple friends, so all in all, it was fascinating to learn about this specific, and niche way of becoming your own boss!
Despite not having a business background, the material was pretty accessible until part five where they discussed completing a preliminary due diligence, raising capital, negotiating a purchase agreement. It seems like a substantial amount of figure-dense documents are needed for this part of the process to transpire.
I was largely motivated to read this book to augment a conversation amongst a couple friends, so all in all, it was fascinating to learn about this specific, and niche way of becoming your own boss!
September 7, 2019
More of a textbook than a book book, but it’s an exhaustive, EXTREMELY helpful guide to a potential small business buyer. Highly recommend, it got my brain churning!
September 28, 2017
Tactical
A great primer on acquiring SMEs. The guide walks through the process of finding, screening, negotiating with, and running a small business. Each step contains exact instructions and considerations for the potential acquirer.
A great primer on acquiring SMEs. The guide walks through the process of finding, screening, negotiating with, and running a small business. Each step contains exact instructions and considerations for the potential acquirer.
May 8, 2017
Packed full of practical advice.
This book completely fulfills the promise made in its title. It offers a step by step guide, filled with practical advice, to buying a small company. It's not all just practical though, it offers clear guidelines, pinned on theory, on selecting the right company to buy.
This book completely fulfills the promise made in its title. It offers a step by step guide, filled with practical advice, to buying a small company. It's not all just practical though, it offers clear guidelines, pinned on theory, on selecting the right company to buy.
August 28, 2025
I got this book as a possible alternative to starting my own business. I was certainly excited to learn more about the process of buying a business. In the process I learned that buying a business- at least by the method outlined in the book- was not for me. All the same, I found the book informative and wonderfully useful.
First, the cons- my main critique on this book is that it only seems to cover the most ideal path to purchasing a business. The reader is advised to take at least one year off to pursue the business purchase without distraction. I absolutely agree with the logic, recognizing my own work in university with aspiring entrepreneurs who got bogged down by life in the launch of their own business. All the same, I do not have access to the more than $100K that I would need for the search process alone. Financing the acquisition seems far more achievable than trying to convince a bank or investor to give me money to search. All that was to give evidence to the idea that the author intended to market their book to a narrow audience- already moderately wealthy people who want to get wealthier. I would have been overjoyed to see multiple recommended pathways to buying a business that cover a wider income and opportunity spectrum. And though I believe it's possible to parse out my own path, I'd much prefer a guide that holds true for the economic bottom of the barrel- rich people can decide what applies to themselves with a greater margin of safety than the poor.
The pros- I loved the book because it is comprehensive. All aspects from deciding whether or not one really wants to buy a business all the way to financing and completing the acquisition are thoroughly covered. I believe that there is practical value to a great number of people who will be better equipped to navigate the complexities of buying a business. Additionally, there is historic value to this book- future economists and scholars will be able to study books like this to see how complex the process of acquiring a business can be. Will this benefit the average reader? I think it can- even if the reader has no intention of running a business of their own. It deepens understanding about commerce, especially in local businesses that are bought and sold. Finally, if one wishes to violently overthrow the chains of oppression that the bourgeoisie hold over the working class, this book will be a good guide to sniffing out corporate rats who try to take over honest small businesses. Highly recommended.
First, the cons- my main critique on this book is that it only seems to cover the most ideal path to purchasing a business. The reader is advised to take at least one year off to pursue the business purchase without distraction. I absolutely agree with the logic, recognizing my own work in university with aspiring entrepreneurs who got bogged down by life in the launch of their own business. All the same, I do not have access to the more than $100K that I would need for the search process alone. Financing the acquisition seems far more achievable than trying to convince a bank or investor to give me money to search. All that was to give evidence to the idea that the author intended to market their book to a narrow audience- already moderately wealthy people who want to get wealthier. I would have been overjoyed to see multiple recommended pathways to buying a business that cover a wider income and opportunity spectrum. And though I believe it's possible to parse out my own path, I'd much prefer a guide that holds true for the economic bottom of the barrel- rich people can decide what applies to themselves with a greater margin of safety than the poor.
The pros- I loved the book because it is comprehensive. All aspects from deciding whether or not one really wants to buy a business all the way to financing and completing the acquisition are thoroughly covered. I believe that there is practical value to a great number of people who will be better equipped to navigate the complexities of buying a business. Additionally, there is historic value to this book- future economists and scholars will be able to study books like this to see how complex the process of acquiring a business can be. Will this benefit the average reader? I think it can- even if the reader has no intention of running a business of their own. It deepens understanding about commerce, especially in local businesses that are bought and sold. Finally, if one wishes to violently overthrow the chains of oppression that the bourgeoisie hold over the working class, this book will be a good guide to sniffing out corporate rats who try to take over honest small businesses. Highly recommended.
December 26, 2025
Buying a small business is less about financial engineering and more about judgment, incentives, and operational reality. The core insight of the HBR guide is that acquisition success comes from disciplined search, honest underwriting, and deep alignment between buyer, business, and operator.
The process starts with clarity of intent. Buyers need to know why they are acquiring, whether it is for cash flow, strategic learning, platform expansion, or long term compounding. Without a clear objective, it is easy to chase deals that look attractive on paper but fail to deliver in practice.
Deal sourcing matters more than most people expect. The best opportunities rarely run through competitive auctions. They come from direct outreach, long tail founder situations, succession gaps, or businesses that are too small or messy for large funds. Information asymmetry is the edge. Time spent building a proprietary pipeline pays off far more than incremental valuation work.
Due diligence is about understanding how the business actually works, not just validating numbers. The most important questions are operational. Who really drives revenue. Why customers stay. Where the fragility is. What breaks if the founder steps away. Financials matter, but qualitative diligence often determines the outcome.
Structure is a risk management tool. Earn outs, seller rollover, and staged ownership align incentives and protect against unknowns. Over optimizing headline valuation at the expense of alignment is usually a mistake. The goal is not to win the deal, but to own a business that still works after the papers are signed.
The guide also emphasizes the importance of transition. The first 100 days matter more than the model. Retaining key employees, preserving customer trust, and avoiding premature change are critical. Buyers who try to “improve” the business too quickly often destroy what made it valuable.
At its core, buying a small business is an operator’s game. Returns come from patient execution, not clever structures. The best buyers think like long term stewards. They respect what already works, fix what is clearly broken, and compound quietly over time.
The process starts with clarity of intent. Buyers need to know why they are acquiring, whether it is for cash flow, strategic learning, platform expansion, or long term compounding. Without a clear objective, it is easy to chase deals that look attractive on paper but fail to deliver in practice.
Deal sourcing matters more than most people expect. The best opportunities rarely run through competitive auctions. They come from direct outreach, long tail founder situations, succession gaps, or businesses that are too small or messy for large funds. Information asymmetry is the edge. Time spent building a proprietary pipeline pays off far more than incremental valuation work.
Due diligence is about understanding how the business actually works, not just validating numbers. The most important questions are operational. Who really drives revenue. Why customers stay. Where the fragility is. What breaks if the founder steps away. Financials matter, but qualitative diligence often determines the outcome.
Structure is a risk management tool. Earn outs, seller rollover, and staged ownership align incentives and protect against unknowns. Over optimizing headline valuation at the expense of alignment is usually a mistake. The goal is not to win the deal, but to own a business that still works after the papers are signed.
The guide also emphasizes the importance of transition. The first 100 days matter more than the model. Retaining key employees, preserving customer trust, and avoiding premature change are critical. Buyers who try to “improve” the business too quickly often destroy what made it valuable.
At its core, buying a small business is an operator’s game. Returns come from patient execution, not clever structures. The best buyers think like long term stewards. They respect what already works, fix what is clearly broken, and compound quietly over time.
August 26, 2022
Excelente guia para comprar un negocio pequeño. Muy interesante la componente estratégica del tipo de negocio a comprar. Buscar negocios duraderos, rentables y estables, que sean fomes. Para lo cual es escencial el nivel de recurrenciade comora de sus clientes.
—————
* P46. Search of small business. Buscar solo o con un partner?
* P53. Para demostrar mas seriedad al proceso (broker y venedor) mejor buscar a traves de vehiculo.
* P55. Nombre. Succession lesdership capital (estrategia sucesiones)
* P81. A la hora de elegir una empresa. Que sea estable y rentable. Para esto es crucial el nivel de recurrencia de compra de sus clientes.
* P82. No es bueno que crezca tan rápido. Crecimiento mas lento, en base a recurrencia de compra, base de clientes mas fieles, menos stress financiero por crecimiento y competencia. Etc
* P88. Comprar un negocio no es lo mismo que comprar un trabajo. Clave que el negocio trascienda al rol de CEO, o uno se puede transformar en un esclavo o tener un negocio muy fragil.
* P118. Estrategia para deal sourcing directo. Emails masivos, pero con cierto nivel de personalizacion para mejorar tasa de respuesta.
* P127. Como indentificar negocios rentables y duraderos. Por la recurrencis compra de sus clientes. Esto depende de su reputación, la competencia, ser una porcion pequeña del costo para sus clientes y estar integrado con sus clientes.
* P133. No comprar negocios: sujetosa cambios tecnológicos, ciclicos, mucha competencia (jamas competir con cadenas nacionales) y activos de especialidad que puedan ser usados por un cliente para negociar. Activos de baja recirrencia.
* P139. Buscar negocios de alto mg ebitda sobre 15-20% que hablan de negocios muy rentables y duraderos.
* P141. Filtros cuantitativos para determinar buen negocio. Mg Ebitda, clientes recurrentes (churn), concentración de clientes y proveedored, de donde viene el crecimiento en ventas, ventas estables o ciclicas?
—————
* P46. Search of small business. Buscar solo o con un partner?
* P53. Para demostrar mas seriedad al proceso (broker y venedor) mejor buscar a traves de vehiculo.
* P55. Nombre. Succession lesdership capital (estrategia sucesiones)
* P81. A la hora de elegir una empresa. Que sea estable y rentable. Para esto es crucial el nivel de recurrencia de compra de sus clientes.
* P82. No es bueno que crezca tan rápido. Crecimiento mas lento, en base a recurrencia de compra, base de clientes mas fieles, menos stress financiero por crecimiento y competencia. Etc
* P88. Comprar un negocio no es lo mismo que comprar un trabajo. Clave que el negocio trascienda al rol de CEO, o uno se puede transformar en un esclavo o tener un negocio muy fragil.
* P118. Estrategia para deal sourcing directo. Emails masivos, pero con cierto nivel de personalizacion para mejorar tasa de respuesta.
* P127. Como indentificar negocios rentables y duraderos. Por la recurrencis compra de sus clientes. Esto depende de su reputación, la competencia, ser una porcion pequeña del costo para sus clientes y estar integrado con sus clientes.
* P133. No comprar negocios: sujetosa cambios tecnológicos, ciclicos, mucha competencia (jamas competir con cadenas nacionales) y activos de especialidad que puedan ser usados por un cliente para negociar. Activos de baja recirrencia.
* P139. Buscar negocios de alto mg ebitda sobre 15-20% que hablan de negocios muy rentables y duraderos.
* P141. Filtros cuantitativos para determinar buen negocio. Mg Ebitda, clientes recurrentes (churn), concentración de clientes y proveedored, de donde viene el crecimiento en ventas, ventas estables o ciclicas?
Read
November 8, 2025Buying a small business: the ability to organize yourself and focus on what’s important is critical to success. What I value(independence, being rewarded for what I do, learning). What I need to do without( a regular salary plus benefits, working for a brand, a community of colleagues, resources and infrastructure). Enduringly profitable consistent small growth business. Right size and matched to my skill set. avoid businesses where you as the ceo are not replaceable. Ignore passions or loving the product. Search for companies you’d be comfortable living in. 20-50% margins. Look for recurring customers and churn rate under 25% and a low customer concentration. Not reliant on a few clients. Ask about the owners expectations. Sellers typically stay on for 3-6 months after sale. Be cautious of young sellers who have no apparent need to sell. Asking the right questions while making an offer. An Sba loan can cover up to 80% of the cost. Seller financing is another popular method. The different stipulations to financing that need to be visited. An investment memorandum, and how to structure investment payoff. Finally, key components to closing the deal. Some of the early aspects, like searching could be done with an Ai tool. After that, going through the process is a lot of fundraising and researching. A good guide to buying a business and what all goes into the process. Enjoyed it and good to revisit when I get to the point of buying.
April 4, 2022
I skimmed probably 20-25 books when building my company acquisition strategy. Some were about taxes, others about the legal side, some about the overall approach for any industry, and others industry-specific. This is the best book of all. It laid the foundation for my company search, including specific tactics for outreach and negotiations as well as specific criteria for filtering. I gained a lot of confidence and clarity while working through this book and modifying my approach and profit modeling. Although I thankfully won’t need to go this route, the idea that I could raise capital by selling equity in a yet-un acquired company was revolutionary to me. Also, my relationships with brokers became better (some actually told me they were impressed with my approach, including the fact I’d developed an online buyer profile). I realized I knew more than I thought I did about analyzing the financial statements and gained confidence in asking more questions of the brokers and sellers. And most importantly this book made me realize that since I was prioritizing profit above industry interest or location, I should set my sights higher, for a larger acquisition than I’d initially planned, and potentially beyond Health in industries I hadn’t considered. Thank you, Ruback and Yudkoff, for sharing your insights beyond your classroom and publishing this fantastic book.
August 12, 2023
I don't recommend reading it, unless You plan to be one of the two participants in this deal (selling or buying a small business). But if you do, it's a must read, because it's written by an expert with years of experience in this field AND giving courses about it for a long time. If you just plan to read it out of curiosity, then the first third part covers most of what You need to know, it gets way too detailed in the end part of the book. But some random ideas from the book:
* It might easily take 2 years full time work and talking to 1000 founders, to find the one company You want to buy.
* If you are a startup founder / company leader and you dare not look into the eyes of the potential investor, then how the hell would he presume You have confidence to run a great company?
* To every on-boarding investor You can tell: You are looking for a group of investors that work well together, so could he recommend anyone else?
* High growth business is also high risk, high stress, high client turnover, high competition, low margins. Rather do slow growth and build relationships with clients, recurring profits.
* You can not be successful fixing a company and a family at the same time, so the latter should be good and supporting.
* It might easily take 2 years full time work and talking to 1000 founders, to find the one company You want to buy.
* If you are a startup founder / company leader and you dare not look into the eyes of the potential investor, then how the hell would he presume You have confidence to run a great company?
* To every on-boarding investor You can tell: You are looking for a group of investors that work well together, so could he recommend anyone else?
* High growth business is also high risk, high stress, high client turnover, high competition, low margins. Rather do slow growth and build relationships with clients, recurring profits.
* You can not be successful fixing a company and a family at the same time, so the latter should be good and supporting.
June 19, 2021
Great introduction to purchasing a small business. The book is short, practical and contains valuable information about the processes involved in sourcing prospects, raisings funds, performing due-diligence and actually closing the deal. It even includes details about what potential 3rd party advisory you will need and when you'll need them in the process; including how a resourceful investor managed minimal search & transaction costs.
The only things I wish I saw more of would be more examples of Indications of Intent (IOI), Letters of Intent (LOI) and more deals like Zeswitz where actual EBITDA fell short of the presented material.
I would've also appreciated more insight into purchasing businesses that are asset heavy vs. businesses dependent more on labor and intellectual property.
Finally, I found myself a little envious of the US readers who received the most relevant advise when it came to corporate structure, acquisition structure and tax considerations. Nonetheless, it points to considerations I need to learn for the Canadian market.
A truly valuable resource for anyone looking to acquire a business for the first time.
The only things I wish I saw more of would be more examples of Indications of Intent (IOI), Letters of Intent (LOI) and more deals like Zeswitz where actual EBITDA fell short of the presented material.
I would've also appreciated more insight into purchasing businesses that are asset heavy vs. businesses dependent more on labor and intellectual property.
Finally, I found myself a little envious of the US readers who received the most relevant advise when it came to corporate structure, acquisition structure and tax considerations. Nonetheless, it points to considerations I need to learn for the Canadian market.
A truly valuable resource for anyone looking to acquire a business for the first time.
January 13, 2025
I purchased this book as a glimpse into ways to supplement income/improve job prospects. Overall, the book reads easily, so if you were never a business major, fear not, the language is comprehensible. Towards the end, when the authors get into the technical jar, it can be easy to get lost; rest assured the authors include a consistent example that they consistently refer back to. The reason I rated three instead of four is simply because I thought the authors were restating the same principles throughout the book in way that almost sounded like common sense to me. However, I know repetition is sometimes key to internalizing complex concepts. I keep repeating their phrase ”enduring profitability”.
I do think this book is a good recommendation for anybody looking into the overview of small businesses. And I do think it gives you enough of a jumping board to honestly start looking for business acquisitions. I loved the authors were very straightforward saying this is not for everyone and basically within chapters one through three. You would already know if you want to keep reading the book based on your interest of business acquisition.
I do think this book is a good recommendation for anybody looking into the overview of small businesses. And I do think it gives you enough of a jumping board to honestly start looking for business acquisitions. I loved the authors were very straightforward saying this is not for everyone and basically within chapters one through three. You would already know if you want to keep reading the book based on your interest of business acquisition.
October 30, 2019
If you had to buy a small business, which one would you buy? How would you look? Where do you get the money from? Why are these businesses so cheap? How much can I trust the seller? There are many questions that pop up throughout the process, both large and small, and it's often hard to sort out the priority and order of answering these questions.
This book helps bring a new small business buyer into the present day with recent information from aggregated into memorable stories and important lessons. A few non-intuitive ideas were to target small businesses that are low growth, boring, with decent profit margins. It's almost like the polar opposite of the ethos of VC's and startups obsession with hockey stick growth, no or even negative margins, using the latest and greatest technologies and innovative concepts.
I'm not really in the market to buy a small business, but if I am, this will definitely be the first book I reach for.
This book helps bring a new small business buyer into the present day with recent information from aggregated into memorable stories and important lessons. A few non-intuitive ideas were to target small businesses that are low growth, boring, with decent profit margins. It's almost like the polar opposite of the ethos of VC's and startups obsession with hockey stick growth, no or even negative margins, using the latest and greatest technologies and innovative concepts.
I'm not really in the market to buy a small business, but if I am, this will definitely be the first book I reach for.
July 10, 2017
This book (a guide) is for top managers who are looking to start their own business via buying a small business which is in "dull" phase at the purchase price of up to 10M. Authors strongly advise against buying tech companies because of high risk of technology changes. Advised financing is 3 parts: own funding, bank/investors, seller debt. Authors guide through all the phases selecting the type of the business to buy, finding these businesses, finding selecting business brokers, finding and working with investors, banks, working with a seller (assuming that in most cases this is the very first deal of that kind for a seller), due diligence process, working with investors, closing a deal, keeping key employees and the business owner/owners.
December 17, 2018
A really insightful guide to buying a small business! The book covers all aspects throughout an acquisition process, including target search, due diligence, financing, and preparing and negotiating an offer. The ideal acquisition target the authors focus on is an enduringly profitable small business that is established and growing slowly with recurring, loyal customers. The book covers valuable real-life examples and checklists to guide you through the process. Highly recommended for (potential) buyers of small businesses, and definitely also useful for sellers and advisors!
February 20, 2023
This book sheds light on a different path for entrepreneurship other than founding a company from scratch.
It is very informative to know what is the rationale behind acquiring a company and run it as your own. Especially for companies that have stable cash flow, slow growing with enough edge over competitors.
The whole process of searching, negotiation and wrapping up the deal is surprisingly long, maybe 2 years. Author gives very helpful tips on what to look for and demonstrate argument with near reality examples.
It is very informative to know what is the rationale behind acquiring a company and run it as your own. Especially for companies that have stable cash flow, slow growing with enough edge over competitors.
The whole process of searching, negotiation and wrapping up the deal is surprisingly long, maybe 2 years. Author gives very helpful tips on what to look for and demonstrate argument with near reality examples.
March 8, 2018
Gives a good idea of the process that one should go through in order to acquire a business. The first part of the book is fairly repetitive and could use some shrinkage. The second part is where I found more value and in some cases like in the financial planning having more details and explanations will improve the book quality. Descent and quick read, major points for outlining the process and the important question you need to keep track of if you decide to take this route.
November 1, 2023
Great resource for anyone that's either (1) trying to figure out if running a firm is right for them or (2) seriously considering buying a small business. Demystifies all the high-level steps with example documents, financial statements, contracts, etc. Did a great job of framing the problem: beyond the basics everything is so deal specific that it can't really be covered in a book so nothing to do but start putting in the elbow grease if if this is a path you're interested in.
November 3, 2024
Enlightening introduction to the differences between small business & big business, differences between buying and founding, and how to think about business performance & valuation. Good for someone new to these topics. I found the in depth case study of one business most helpful, & wish that was more the focus of the book. The rest reads like a theoretical instruction manual which is very abstract and IMO a lot of it is restating common sense.
September 25, 2025
The book is packed with relevant information, with practical example for the LOI, among other things. Although a lot of information is more relevant for the US market, with just a bit of work, you can extrapolate what you learn for other market too. A lot of counterintuitive advise at first, especially if you come from a background like Venture Capital or Private equity, but make a lot of sense after the author explanation (aim for low growth, dull business)
August 25, 2018
Very good at covering the basis
This is a good primer on things to assess and think about when purchasing a business as a first time purchaser, specifically of a small business. While the examples may not apply, the principles and tips on due diligence should apply to any purchase.
This is a good primer on things to assess and think about when purchasing a business as a first time purchaser, specifically of a small business. While the examples may not apply, the principles and tips on due diligence should apply to any purchase.
June 15, 2020
Clear, concise manual on how to buy a business
This is a well written, easy to understand and practical to execute manual on how to buy Small business. It is well written and thorough. There isn’t a lot of flash and self promotion of the authors just the nuts and bolts of getting it done
This is a well written, easy to understand and practical to execute manual on how to buy Small business. It is well written and thorough. There isn’t a lot of flash and self promotion of the authors just the nuts and bolts of getting it done
March 3, 2021
It was allright, if you filter down to what aspects of it applies to buying common stock. I can't imagine any regular Joe actually going for buying a business like that, it's against my no-loan policy. It seemed too much to create an office and a company to buy a business on loans. Just buy stock with cash, partly based on the criteria outlined in this book.
June 6, 2021
Great source of information for Acquisition Entrepreneurship
If you are looking to become an Entrepreneur through making acquisitions this book has a handful of information, insights and examples on how to do your search, what kind of deals to look for, how to quickly screen firms, valuing a company and raising finance.
If you are looking to become an Entrepreneur through making acquisitions this book has a handful of information, insights and examples on how to do your search, what kind of deals to look for, how to quickly screen firms, valuing a company and raising finance.
May 28, 2023
excellent advice
This book, written several years ago, endures. I gained valuable knowledge and insight into the steps of acquiring a small business. The book is specific, process-oriented, and simple. I left confident in the steps I was taking and got some practical advice to implement now. Great read!
This book, written several years ago, endures. I gained valuable knowledge and insight into the steps of acquiring a small business. The book is specific, process-oriented, and simple. I left confident in the steps I was taking and got some practical advice to implement now. Great read!
June 17, 2023
I’m a huge fan of this! I think buying a business is much more accessible than people realize. We’re on the brink of the Baby Boomer retirement and buying great “dull” businesses that are “enduringly profitable” seems to be a great path towards prosperity.
This covers everything so well. It’s extremely accessible. It’s also small book (it could fit in my back pocket).
This covers everything so well. It’s extremely accessible. It’s also small book (it could fit in my back pocket).
June 23, 2024
Not here for posturing, so an explanation for transparency; I would rate a 5 for the presentation of content but a 3 in terms of my actual enjoyment. Hence, 4!
For a novice to all topics economic/small business-oriented, I can see how this would be a great introduction to relevant terms and standard practices.
For a novice to all topics economic/small business-oriented, I can see how this would be a great introduction to relevant terms and standard practices.
Displaying 1 - 30 of 92 reviews