What’s the number one thing I look for when buying a business?
Most people assume it’s financial – strong SDE, recurring revenue, healthy margins, low customer concentration. All the numbers you’d expect from a solid deal.
But it’s not.
The most important factor in any acquisition isn’t the business – it’s the buyer.
More specifically, it’s business-buyer fit – the alignment between who you are and what the business needs to thrive.
This is the single biggest predictor of post-close success. And yet, it’s also one of the most overlooked. Buyers get so caught up chasing the “perfect business” on paper that they forget to ask:
Is this the right business for me?
At Acquisition Lab, buyer fit is foundational. That’s why we dedicate the first two weeks of the program to helping you figure it out – before you ever write an LOI.
In a recent Office Hours, Acquisition Lab co-founder Chelsea Wood broke down exactly what buyer fit means, why it matters, and how to search in a way that minimizes risk — and sets you up to own a business you actually want to run.
Today we’ll recap that session and walk you through the key takeaways we share with every Lab member before they ever write an LOI.
Let’s dig in.
The Buyer’s Fantasy Business (And Why It Doesn’t Exist)
I’ve talked to thousands of acquisition entrepreneurs over the years. Most describe the same “dream” business:
- Recession-proof
- Recurring revenue
- High margin
- Low customer concentration
- Moated
- AI-resistant
- Off-market and underpriced
- With a seller who’ll stick around for 12 months to mentor them
It’s like a dating profile where the person wants someone kind, smart, fit, rich, adventurous, stable, funny, and who loves dogs – but also travels constantly.
In other words, it doesn’t exist. Or if it does, someone else already bought it.
But more importantly, just because a business looks great on paper doesn’t mean it’s the right business for you.
You Are the Biggest Risk
Here’s what most buyers don’t want to hear: You are the biggest risk to the business – not the economy, not the seller, not the industry.
A mediocre business in great hands can thrive. A great business in the wrong hands can fall apart.
Your “target statement” – your north star for the search – sits at the intersection of your skills and the company’s needs.
Instead of asking, “What business should I buy?” ask:
“What business needs what I bring to the table?”
This is why we still run live intensives inside the Lab – even after 49 cohorts. Not because I love Zoom. But because most people won’t do this kind of introspective work unless we make them.
What Is a Buyer’s Value Proposition?
Your value proposition is your unique advantage – your combination of experience, skills, and preferences that align with a business’s needs.
Ask yourself:
- What experience am I bringing to the table?
- What projects have I led that improved operations or profits?
- What have I consistently been good at?
- How do I actually want to spend my time post-close?
This is where buyers go wrong. They either:
- Buy a business that looks great on paper but doesn’t match their strengths
- Or assume they can “hire out” the skills they’re missing
That’s a risky move – especially when there’s a personal guarantee involved.
The best way to mitigate risk? Don’t chase trends. Replicate the success you’ve already had.
Buyer Archetypes (and What They Should Buy)
At the Lab, we help people identify what kind of buyer they are and what kinds of businesses fit best, based on their unique experiences and skill sets.
Think of this like a matchmaking exercise.
Here are the most common profiles and how they line up with different opportunities:
Digital Marketer: Buy a business that’s under-leveraged online but has solid ops in place.
Process Engineer: Look for operational complexity that can be streamlined. Just make sure someone is staying behind to sell.
Sales Pro: Find a business that’s grown by referral but has no formal sales infrastructure. Bonus if there’s a team to fulfill on the backend.
Ops Leader: Perfect for a business that’s grown despite itself. These companies need structure to scale.
Culture Builder: Can thrive in a company with a misaligned or toxic team – as long as they’re ready for the churn that comes with big culture shifts.
It’s not about buying a business you like. It’s about buying a business where your presence improves performance and where your previous success can be repeated in a new context.
And one big rule of thumb: If the seller is taking a key skill set with them, you need to replace it – either with yourself or someone staying on.
Types of Businesses to Consider
You don’t need to name your dream industry on day one. But you should understand which types of businesses align with your skills.
Here’s a quick breakdown:
- Franchise: Best for buyers who want infrastructure, training, and a playbook. Not ideal if you love branding or want creative control.
- B2B Service: A great match for someone with sales or client management experience.
- Manufacturing:A good fit if you have experience in optimization, operations, or complex logistics. Be prepared: it’s capital intensive.
- Distribution: Ideal for someone with ops experience and an appetite for process efficiency.
- Online / SaaS / eCom: Flexible and lean, but comes with risk. You’ll need digital marketing or product experience – and a stomach for algorithm changes.
Should You Buy a Franchise?
Franchises can be fantastic – if you’re the right buyer.
They offer:
- Proven models
- Built-in training
- A network of peers
- Simple, scalable growth paths
But they’re also restrictive. If you love branding, hate rules, or want to innovate… you’ll hate it.
And please – don’t buy a new franchise territory as your first deal.
That’s not an acquisition. That’s a startup in disguise.
We’ve seen people take on franchise fees they couldn’t recoup, then scramble to acquire something else just to cover the cost. It’s not lower risk – it just feels like it is.
Real Stories: When Buyer Fit Goes Wrong
I’ve seen misalignment destroy otherwise solid deals. Here are two patterns that show up often:
- The “I’ll figure it out” buyer: They buy a business with a plan to outsource key functions they don’t understand – then spend months stuck in cycles of hiring, waiting, and firing because they can’t assess what’s actually working.
- The “I don’t need to connect to the work” buyer: They buy a lean, profitable company, only to realize a year later that they miss being part of a team or tied to a mission. The business is fine – they’re just deeply unhappy.
Neither failed because of bad numbers. They failed because the business wasn’t a fit.
Self-Knowledge Is Strategy
If you’ve never led a team, managed a budget, or owned a department – now’s the time to build those muscles.
Take a role that gives you the exposure you need. Learn before you buy. That’s not a detour – it’s a power move.
And let me say something that might surprise you: Not everyone should buy a business.
That’s not gatekeeping. It’s protecting people from avoidable mistakes. I’ve seen someone raise $40M to buy a company – without ever holding a job.
That’s not entrepreneurship through acquisition. That’s delusion.
You can do this. But do it the right way.
The Bottom Line
You don’t need to find the best business.
You need to find the right business – for you.
Forget what’s trending. Forget what’s hot on Twitter.
Build your search around your strengths, your goals, and the kind of work you want to spend your life doing.
This isn’t just a financial decision. It’s a leadership decision.
And the best way to lead a company you didn’t build… is to buy one that needs exactly what you bring to the table.
Ready to acquire a business in the next 12 months? The Acquisition Lab is your first stop. Reach out to us today and get on the fast track to becoming an acquisition entrepreneur.
