Does anyone have experience buying a company with <4 employees?

searcher profile

January 23, 2024

by a searcher from The University of Chicago - Booth School of Business in Chicago, IL, USA

I'm speaking with a couple business owners who have great businesses, albeit a bit small. They have healthy margins (>40%) but each of their respective operations are run but a team of essentially 2-3 employees. I'm wondering if anyone can share their experiences either with diligencing businesses like this or if they have experience acquiring and running a business this small.

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Reply by a professional
from University of Michigan in Detroit, MI, USA
We regularly work with clients looking to purchase businesses with less than four employees. Often, they are small software businesses which have been built from the ground up by one person. The good news is less employees often equals less legal risk on the employee/employee benefit side. But not always and it may present other risks, particularly with respect to key employees who are at risk of leaving following your purchase. Anyway, always happy to talk, if I can be of help. Feel free to either DM me or send me an email at redacted
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