Not all $1M revenue businesses are equal

Hey there,

Revenue is meaningless without context.

Here’s what actually matters:

Owner Dependence
If the business collapses when the owner leaves, it isn’t an asset — it’s a job.

Cash Flow Quality
Add-backs are often fiction.
True Seller’s Discretionary Earnings must be properly normalized.
With our operating partners, we quickly identify inflated adjustments and negotiate from a position of strength.

Customer Concentration
If one customer represents 40% of revenue, you’re not buying a business — you’re buying risk.

Industry Fragmentation
Fragmented markets create roll-up opportunities.
Highly consolidated markets cap upside.
We already know which industries are fragmented and structurally more profitable.

Debt Service Coverage
SBA 7(a) lenders typically require a minimum 1.25× DSCR and clear value-creation potential.
We structure deals to meet those requirements.

A $1.2M revenue business can be terrible.
A $900K revenue business can be exceptional.

The skill is knowing the difference in under 30 minutes.

We evaluate:

• Margin consistency

• Labor structure

• Pricing power

• Seller motivation

• Exit optionality

If you don’t know how to assess these quickly, you will either:
A) Miss great deals
B) Buy bad ones

If you want our firm to handle this for you — no courses, no fluff — book a call here:

Book a call