My Business Acquisition Criteria

1. Subscription-Based Revenue Stream:
The target company should have a revenue model primarily based on automatic monthly or annual subscriptions, ensuring steady cash flow.
2. Proven Track Record of Profitability:
The target company should have consistently demonstrated profitability over an extended period, confirming its financial viability and business health.
3. Sale or Operational Potential:
The target company should have a business model and operational structure that offer substantial flexibility for future plans, either through a lucrative exit or by continuing to run effectively with a dedicated operating team.
4. Scalability:
The company should have a framework that supports easy onboarding and integration of new team members, demonstrating potential for scalable growth.
5. Location-Independent:
The company should be operable from any geographic location, offering flexibility and lowering overhead costs.
6. Diverse Customer Base:
The company should cater to both individual subscribers and group memberships, widening its revenue streams and reducing dependence on any one segment.
7. Low Churn Rate:
An ideal target will have a proven track record of customer retention, as reflected in a low churn rate, assuring consistent long-term revenue.
8. Predictable Business Metrics:
The company should have established, transparent funnel metrics including Customer Acquisition Cost (CAC) and Lifetime Value of the Customer (LTV), making its future revenue more predictable.
9. Brand-Centric and Non-Founder Dependent:
The business should be built around a strong brand, and its operations should not be overly dependent on any single founder or group of founders.
10. Simplified Knowledge Transfer:
The operational know-how should not be tacitly held within a few key individuals. The company should be capable of growing its team through straightforward training protocols.
11. Online Presence:
The company should have the capacity for effective online launches and demonstrate a strong online presence, which is essential for scaling.
12. Customer Acquisition Strategies:
The target company should have proven online customer acquisition funnels using Facebook ads, Google Ads, email marketing, and Direct Response Copy, indicative of its ability to sustain and grow its customer base.

Share This Post

More To Explore


EP30 From Corporate Layoff to Business Acquisition of a Trailer Dealerships Texas with Shane Ehrsam

In this episode of I&S, our host Gabriel Murillo sits down with guest Shane, the new owner of North Texas Trailers, a multi-location trailer dealership. Shane shares the inspiring story of his journey from corporate America to acquisition entrepreneurship, discussing the challenges, fears, and motivations that led him to take the leap into business ownership.

From navigating the complexities of dealership and manufacturer relationships to his ambitious plans for business expansion, Shane’s insights into sales processes, employee experience, and potential acquisitions provide a compelling narrative of growth, determination, and the pursuit of success.


EP29 Lessons from the Front Line: Buying Businesses in Guatemala with Diego Cerezo

Welcome to Episode 29 of the Invest & Scale, “Masters of the Deal: Acquisition Strategies and Growth Insights.” Today’s episode features a gripping dialogue with Diego Cerezo, an entrepreneur who transitioned from running a Guatemalan craft brewery to mastering the art of business acquisitions in Latin America. Diego tells us about the influences that triggered his shift towards acquiring businesses and shares his personal experiences navigating the unique challenges of Latin America’s acquisition landscape. We’ll also explore creative financing arrangements, the significance of partnerships and mentorship, and the critical role of strategy in managing a diverse portfolio of companies. Get ready to dive into a world where deal-making meets strategic foresight, and introspection becomes a cornerstone of success in business acquisitions. Whether you’re a budding entrepreneur or an experienced professional, this episode is brimming with valuable takeaways.

Now, let’s roll the intro music and get ready for an enlightening session on “Investment Scale” with Diego Cerezo. Stay tuned!

Sign up for our newsletter!

Each month, we send out a short update with information about new episodes, tools, and resources for entrepreneurial investors.

Join Invest & Scale