My simple rule for finding the best businesses to buy

Hello friends!

When I started acquiring businesses, I knew pretty quickly that I wanted to build something that would last…

Not just something that worked in a good economy or a low-interest-rate environment.

So I developed a simple filter I still use today:

“If my grandma wouldn’t understand it, I’m not buying it.”

Here’s how that practically impacts my decision-making 👇

Community Spotlight

Darwin searched for 18 months before closing on a $1.3M SaaS company with partners and investors from his network.

He went through multiple failed deals, but the community and coaching kept him going until he found the right one.

👉 Want a community that sticks with you through the entire journey, however long it takes? Book a call with our team here. Book a call with our team here.

Look for Businesses Stuck in the Past

Some of the best deals I’ve found are businesses doing serious revenue while operating like it’s decades ago, with:

• Paper invoices

• No website

• Zero online presence

• And a phone that still rings constantly

That tells me something important:

Their work is good enough that customers keep coming back despite the friction.

Now imagine what happens when you modernize the operation with better systems, an actual online booking process, and a functioning website.

Suddenly, you’ve got a competitive edge in a market full of businesses that haven’t changed in 30 years.

(Regular support from other current and aspiring business owners can make all the difference in your own success. The Acquisition Ace community has 2,000+ members you can connect with on their acquisition journey. If you’d like to be part of it, and benefit from the community, too - book a call with our team here to see if it’s a good fit.)

Older Businesses are Safer Businesses

The failure rate for businesses under five years old is brutal.

But for businesses over five years old, they’ve already survived recessions, competition, and market shifts, and that track record is worth a lot.

I target businesses with at least five years of operating history, and ideally much more.

The older and more “boring” the industry, the better, because boring industries tend to be essential ones.

Weak Competition is a Hidden Advantage

In a lot of these older, traditional industries, the bar for standing out is incredibly low.

If you acquire a business and simply invest in the basics - a modern website, online reviews, streamlined scheduling - you can become the obvious choice in your local market almost overnight.

Stability Over Excitement

I’m looking for businesses with predictable, recurring revenue from services people need regardless of what’s happening in the economy.

HVAC, accounting firms, waste management, and car washes aren't exciting businesses.

But they cashflow consistently, they’re recession-resistant, and they’re usually prime candidates for the kind of modernization I just described.

The playbook here is simple: find an old-fashioned, well-run business in a stable industry, buy it, and bring it into the current decade.

If you’re interested in acquiring a business but don’t know where to start…

Join the Acquisition Ace community, where we help thousands of members go through the process of acquiring their first business.

To join 2,000+ other members learning about and succeeding in business acquisitions…

👉 Book a call with my team here to see if it’s a good fit.