The Do’s and Don’ts of Acquisition Entrepreneurship with Elliott Holland, Guardian Due Diligence

Episode highlights:

• When considering an acquisition, it’s essential to understand when something is a real red flag (and the deal should be avoided) or just a potential red flag that is worth trying to work through. Being too risk-averse or too gung-ho can cause you to end up accepting a bad deal or losing a good one. (17:51)
• Don’t trust your gut! Yes, you read that right. Trusting your instincts is a dangerous game for an acquisition entrepreneur because deals can look much sweeter than they really are if you’re feeling dissatisfied (which is often the case for people looking to buy a new business). Instead, focus on the data; “if the numbers don’t jive, you should run.” (20:54)
• If you want to buy a business, make sure you decide upfront on the point at which you will walk away from a deal (i.e., your “line in the sand”). Otherwise, you leave yourself vulnerable to entering into deals that will not serve you. (26:34)
• The only way to get clients is through marketing, so it’s important to be laser-sharp when defining your ideal client and to be discerning about whose feedback you are listening to. (37:29)
• There are countless definitions of success. Be very specific about what success means to YOU so that you don’t judge your progress based on someone else’s definition. (42:28)

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