Entrepreneurs often face this decision. Start a company from scratch… or acquire one that already has revenue. Both paths have advantages. Starting a company offers flexibility. Acquiring a company provides immediate cash flow and infrastructure. Which approach appeals to you more, and why?

Here’s a hypothetical example. Price: $1.1M Revenue: $1.3M SDE: $420K Questions experienced buyers might ask: • Are revenues stable year to year? • How dependent is the business on the owner? • Are add-backs reasonable? What additional information would you want before pursuing this deal?

https://www.youtube.com/watch?v=TqTUFbHuVmQ

https://www.youtube.com/watch?v=jG24pd7LfFI

A common mistake first-time buyers make is focusing only on the headline numbers. For example: Revenue: $1.4M SDE: $450K Price: $1.2M At first glance that looks attractive. But deeper analysis might reveal: • customer concentration risk • outdated equipment • unstable revenue patterns Numbers rarely tell the full story. When evaluating deals, always ask: “What must be true for these numbers to remain true after I own the business?”