Acquisitions = Risky Business

professional profile

November 25, 2025

by a professional in New York, NY, USA

When you buy a business, you are not just buying cash flow - you are buying risk. That risk looks like: Losing a key customer right after close Inheriting a team that does not trust you as the new owner Clients quietly leaving because their loyalty was really to the seller Debt payments that do not care if this was a “transition year” Most ETA / self-funded buyers see the upside - and they are right. There is a ton of potential in buying a good small business. But potential without a clear view of risk is how people end up: Missing debt covenants Scrambling to make payroll Watching a “great deal” slowly die That is where quality of earnings comes in. At QOE Prep, we help you see the risk before you sign the purchase agreement, including things like: Customer concentration - what happens if the top 1–2 walk? Seasonality - does this business actually earn the same in Q1 as it does in Q4? Cash collection issues - lots of “revenue,” not a lot of cash in the bank Service line trends - which lines are growing, which are quietly shrinking? Do you really understand the risks of the business you are buying - or are you just believing the story you are being told? Email me at redacted or set up a call Calendly.com/qoeprep to discuss your next acquisition. We have completed over 500 deals and help buyers like you buy companies at the right price.
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