The shocking success rate of business acquisitions

Most people think buying a business is risky.

But what if I told you that buying an existing profitable business has a 95% success rate after 5 years…

And that the 5% that do fail usually fail because of just a few common mistakes that you can avoid.

Let’s break this down 👇

When we talk about business acquisition success rates, we’re looking at over 95% success after 5 years post-acquisition.

These statistics come directly from the SBA.

They track businesses to see if they’re still paying their SBA loans with no delinquencies 5 years later.

Now, compare this to startups, where 95% fail within the first 5 years!

It’s the exact opposite statistic.

Think about it…

When you start a business, you have to go from 0 to 1: find a product or service, hire employees, and get clients.

With business acquisition, you don’t have to start from scratch.

Most businesses we focus on have been around for decades and survived multiple economic downturns, including 2008.

Why the 5% fail

There are a few common issues that can lead to an acquisition not working out, and the good news is… they’re largely avoidable!

Here are some of the biggest pitfalls:

Poor due diligence: They ignore red flags and don’t get professionals to verify the financials.

Wrong business type: They skip the three pillars (recession-resistant, recurring revenue, barrier to entry).

No proper management: They buy themselves a full-time job instead of a business.

Changing everything day one: Instead of understanding how the business works, they come in saying “my way or the highway.”

Going it alone: They try to figure it out without guidance from people actively doing deals.

Let’s put this into perspective

If someone said, “Take this bet with a 95% chance of changing your wealth outlook forever,” would you take it?

The businesses we target have been around 20+ years.

They’ve survived recessions and often have decades of financial data showing consistent profits.

Even with AI everywhere, people still need plumbers when toilets leak and AC repair when it's 100° outside.

When you buy an existing profitable business, you get:

• Existing cash flow

• Established customer relationships

• Trained employees

• Documented systems

Plus, the SBA loan process means the bank does their own due diligence before lending you money.

So, what’s the real risk?

While you’re worrying about the 5% chance it doesn’t work, you’re missing the 95% chance it does work and the potential to change your life.

Most people afraid of this “risk” are working jobs where they have zero control over their income, conditions, or future.

You want to talk about real risk?

Think about continuing down the road you’re already on.

Working 50+ hours a week for someone else’s dream while missing time with your family.

That’s the real risk.

In summary…

Buying an existing profitable business isn’t nearly as risky as most people think.

The real risk is staying stuck where you are, and working for someone else’s dream while missing out on building your own wealth.

If you’re ready to take that leap into business acquisition…

I occasionally share interesting deals with this list when I come across them.

If you’d like to get these emails, just fill out the 2-minute survey below.

👉 I want to buy (or passively invest into) a business

Or, if you want to sell a small business and you’re actively looking for buyers, tap the link below and tell me about it:

👉 I want to sell my business

Onward,

— Ben Kelly