Thoughts on a small acquisition…

December 29, 2025

by a searcher from Emory University in Saugerties, NY, USA

I am looking for some pros and cons of a smaller acquisition. I know the old adage, working in the business not on the business, but more so where do you all see fragility and/or strength. Commercial Landscaping, 200K SDE, 2X Multiple, SBA pre-approved, 15 years in Business. Looking at possibly purchasing with a 2nd identical company. Help me play devils advocate!

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Reply by a searcher
from University of Colorado at Boulder in Los Angeles, CA, USA

Hey Scott, I asked this same question and ultimately went the smaller route with my business acquisition in a similar field to landscaping. Looking at it through an operational lens-- Biggest Pros: you can build the processes yourself, the right way, the first time. You also have the opportunity to test a thesis with lower stakes. There's also value in getting in the game immediately vs waiting indefinitely for a larger deal. Biggest Cons: I wouldn't expect to take home $200k (or even close). After you invest in all the things you're excited to improve (marketing system buildout, brand update, uniforms, software/process implementation, tech training, employee incentive programs, etc), you're actually not going to have $200k income. Factor in debt payments and growing working capital/AccRec lag, and you could find yourself stretched thin at the end of each month. It's going to be harder than you think to keep the ship moving forward once you take the helm, and margins will be significantly slimmer than your model at this size range. For most first time operators (including myself), there will be a temporary cost associated with inexperience, and it's almost never accounted for. Just my 2 cents... happy to chat more if you send a DM

Reply by a lender
from California State University, Sacramento in Seattle, WA, USA

Devils advocate….Two at one time for a fist time buyer are tougher then you might be thinking. And landscaping with a lot of debt on it, especially small, is not necessarily the darling performer that social media might suggest. Happy to talk specifics with you. I have a buyside template for you to share our buyside overview with us to prep a conversation. Also do weekly sessions on all things SBA lending if you’d like to join our live zoom session with q&A. redacted

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