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 Northwestern University in Brooklyn, NY, USA

I haven’t done it and I’m still early in my search, but when I consider this my reasons for rolling it out were: 1. The SDE is much more variable at that point and I’d be worried about the consistency year over year. 2. Unless businesses are physically are near each other. and immediately operable as one you’ll be taking on two full-time jobs working of working in the business rather than on it, not just one of those. 3. If your plan is to hire a GM once you have multiple of them will be looking for a very talented individual who likely would want a larger salary of managing dispersed businesses.

Reply by an intermediary
from Mount St. Mary College in Orange County, NY, USA

I have owned an operated businesses at that size and they are fragile, but I think the best investors look at everything as a mater of risk/reward. How can you work to structure the deal to mitigate some downside risk. There are a lot less buyers and less sophisticated buyers in this size range that may help increase the opportunity. I would want to know more: what is the quality of the revenue? What are the margins? Is there a path to growth? I am geographically nearby and working on a deal in that industry currently, so feel free to reach out if you want to chat.

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