⛰️ Pre-acquisition FAQs

What type of business does Acquira have the most experience in?

As of 2024 the majority of our experience lies in home services businesses and construction/manufacturing businesses. Industries such as:

  • HVAC
  • Plumbing
  • Roofing
  • Landscaping
  • Electrical
  • Kitchen Countertops
  • Kitchen Cabinets
  • Metal Manufacturing
  • General Contractors

Much of business is the same across industries and it typically only takes a year or so to build up a decent level of subject matter expertise.  We work with Acquisition Entrepreneurs across any industry, and especially encourage you to look at other industries that  align with your professional background and network.

We recommend you check out our comprehensive article on the Best Business Sectors To Buy.

How much cash in total do I need to have in order to do a deal?

Here is a breakdown of the typical capital requirements. Please note that these can vary depending on the specifics of the business. If you add these costs together, you will find that a safe number is ~$150,000 in liquid cash or more.

You should plan to put at least 10% cash down on the business.  We recommend businesses earning at least $500k/year in SDE and multiples are usually between 2x and 3x. This means a minimum purchase price of $1mm to $1.5mm, which means a cash downpayment of $100,000 to $150,000.


If you are using SBA, they may want to see $20k-$30k left in reserves post-close.

What are costs I need to plan for from LOI to close?

As always, the caveat is that these costs can fluctuate depending on the specifics of the deal. But in general, you can expect to incur these expenses from LOI to close:

  • ~$15,000 for a Quality of Earnings report
  • ~$20,000 in legal costs
  • ~$2,500 for a site visit (travel, lodging, meals)
  • ~$5,000 in potential out of pocket costs related to SBA financing
  • $1,000 for entity creation
  • $5,000 miscellaneous/unexpected costs

Once again, these are costs paid directly to our vetted vendors, not to Acquira.

Can I buy a business if I’m in a country outside of the United States?

Yes, but you must be willing to move to the United States and spend 50%-100% of your time on the business for at least 6 months post-acquisition. Of course, the constant disclaimer here is that it always depends on the specifics of the business. It’s also important to note that if you plan to acquire a business with SBA financing, you must be a US citizen or a permanent resident of the US.

Do I need to quit my job to work on an acquisition?

Your workload during Phase 1 has been designed to be easily taken on while still holding a 9-5 job. This phase can last between 6 and 9 months.  During the first few months of Phase 2, it is recommended that you take some time off or work remotely, as at least 30 hours of work per week are needed. If that's not possible, then quitting your job and dedicating yourself to the new business is what we recommend, and we would need to make sure your needed income in covered by the business.

I am really worried that I will acquire a lemon and that it will tank quickly

Our diligence process and tools that we provide aim to eliminate any guesswork in the deal search process and ensure you are aware of all the risks and potential threats within each business that you look at. These frameworks have been built from our experience analyzing hundreds of businesses over many years. It’s also important to understand that the businesses we acquire have been around for decades with an established staff and client base. It’s next to impossible for these types of businesses to tank overnight.

How exactly do we connect with Acquira’s vendors throughout the acquisition process?

Acquira will put you directly in touch with our vetted vendors when appropriate at every stage of the acquisitions process. These include vendors for legal, financial diligence, growth plans, lending, and more.

For example, once you have found a business and decide to issue an LOI to the seller, we will put you in touch with one of our transactional attorneys who will work with you to revise our standard LOI as needed.

You will pay these vendors directly – Acquira does not earn here. The costs of our vendors have been negotiated down based on scale and they are very familiar with our goals and how we operate. This means you will be spending much less time and money than if you were to work with vendors outside of our ecosystem.

Are you open to working with partnerships?

Yes, we work with pairs of Acquisition Entrepreneurs all the time. Approaching an acquisition with another partner can be a great way to share the financial and time commitment required.

Also, If your partner is also going to be heavily involved in the operations of the business, we would prefer that they go through our Acceleration Gauntlet so that we can get to know them and start building trust and rapport.

Will Acquira invest in my business?

We are interested in making investments in businesses that we feel we are able to add a lot of value to.  Typically that means we are confident our involvement will a) double the value of the business and b) provide an exit path.  The terms of that investment are always on a case-by-case basis, after the deal is closed.

🚀 Post-acquisition FAQs

How much time will I need to spend on the business after I buy it?

You should have the flexibility to spend 75%+ of your time on-site working on the business with your general manager during the first 6 months post-acquisition. Assuming everything goes as planned, you can aim to taper off that involvement with the ultimate goal of being more passive 12-18 months post-acquisition.

What can Acquira do for my business post-acquisition?

Post acquisition, our team can provide training, systems, resources, and coaching as you and your leadership team operate the business. It is part of our ACE framework at an additional cost to any buyers who wish to implement it. We will also introduce you to third party vendors that we have vetted that the business will pay (for example, contractors to accomplish digital marketing initiatives, and more).

What does our relationship look like longer term (after 12 months post acquisition)?

Our goal is to start working on another acquisition with you 12 months after the first acquisition and continue building your portfolio from there. Our team is also continually developing new systems and training from information we glean from our other acquisitions. We'll continue to roll these resources out to you as we create them.

🏢 FAQs about Acquira

Who is on the Acquira team?

Glad you asked! Check out our team page here. Keep in mind there are over a dozen folks not yet represented. Make sure to click into our in depth and transparent bios.

Have any of your businesses failed?

No. As of March 2024, we have helped close 30+ businesses with other Acquisition Entrepreneurs under this model. None of these businesses have defaulted on their loans.

Why doesn’t Acquira buy online businesses?

Although Acquira’s background is in digital acquisitions and we own a portfolio of websites, we don’t currently pursue online acquisitions with other acquisition entrepreneurs. The details on this have been outlined in this article.

How are you able to provide your services to multiple Acquisition Entrepreneur/businesses at the same time? Are you promising more than you can deliver?

It's important to understand that Acquira is not an operations company, we are a systems and training company. This means we don't have to duplicate ourselves for every deal we do with you. Our superpower is identifying business best practices, turning them into fireproof systems, and training people how to implement them. This could be training you, training your general manager, or training a third party service provider that the business pays.

We give you the shoes, you do the legwork.

How does Acquira make money?

Acquira makes money in the following ways:

  • Paid training
  • Paid consulting
  • Our own portfolio of businesses that provide us cashflow
  • Distributions from partner businesses
    • Whenever one of the Acquisition Entrepreneurs we’ve partnered with decides to distribute cash from their business, we receive a percentage of that distribution proportionate to our ownership in the deal (up to 30%)
  • Liquidity events in our partner businesses
    • Usually exits, sometimes an ESOP or a public listing.
What is the difference between Acquira and the Search Fund model?

With the Search Fund model you are typically looking for larger businesses ($30mm+). Acquira targets smaller businesses in the $1.5mm-$5mm range.

The Search Fund model also usually means you are raising a lot of money from investors, quitting your job and searching for a deal full time. Once you close on a deal, because of the money you have raised you might get 20-30% equity in the business. Acquira's search process does not require you to quit your full time job, and when you do a deal with us you own it outright.  Our decision to invest is done after the deal, mutually agreed upon, and typically has us coming in as a minority partner.

Can I talk to Acquisition Entrepreneurs you have worked with?

While we appreciate the question, we try our best to protect our Acquisition Entrepreneur’s time and instead we prefer to capture their experience in an interview so we can share it at scale.

You can find this on the case study interviews on the left menu.  There are significantly more within our library of weekly calls as we often bring these entrepreneurs on for live Q&As.  This library as well as live weekly call access is available to all Accelerator and Accelerator+ customers.

You will also be able to tour a live business as part of our workshop [link to workshop video]  These workshops are typically held in Fort Lauderdale or Denver depending on the time of year (generally every other month).

Why doesn’t Acquira just continue to buy businesses themselves? Why work with other Acquisition Entrepreneurs if the opportunity is so amazing?

We’ve acquired over a dozen wholly owned and operated businesses. During the course of this we realized 3 things:

  1. That we were really good at the acquisition process and also thoroughly enjoyed creating training and systems for our vendors, contractors, and general managers on how to purchase, systematize and grow our businesses.
  2. We realized that there was more opportunity out there than we knew how to take on ourselves (especially with the mega trend of baby boomers retiring), and we wanted to continue to acquire small businesses in scalable win-win way.
  3. We noticed that there were entrepreneurs who were beginning to see the benefits of acquiring businesses instead of starting them, and we love helping people create their own freedom.

The above 3 points caused us to create the Acquira business model. By working with majority owner operators like yourself to acquire businesses, we can deploy our experience and capital in a scalable way. By working with a strategic partner like Acquira, you can walk into a 7-figure acquisition with confidence. Win-win.

I already have a deal I’m looking at and I need to take action sooner than later, do I need to go through your whole process before I can discuss this deal with you?

There are 3 calls included with our advisors, apart from an unlimited number of investment committee reviews. As soon as you sign up to the program, you can use one of these calls and discuss the deal, without going through the formal investment committee process.

🏦 SBA and financing FAQs

Who walks me through the lending process?

When appropriate (typically around the time you are submitting an LOI) we will connect you to our preferred lenders as well as our legal team. You will be directly in touch with them and we will be close by to provide guidance.

Will the SBA require my home as collateral?

SBA only takes your house as collateral if you have enough equity – the lender isn’t required to take collateral with real estate if the equity in that real estate is less than 25% of the property’s fair market value.  But, then the lender has to document the source (basically what you owe on the house and how much equity you have through a home appraisal)

What if I have few to no personal assets to use as collateral for a loan?

Contrary to popular belief, a guarantor on an SBA loan does NOT necessarily need to have any personal assets to put up as collateral. If this is the case, on the borrower (your) side SBA will be looking at your credit score, liquidity, and your resume. They will also lean heavily on the cashflow and assets of the business to secure the loan.  

How involved in the business will the SBA want me to be in order to get a loan?

The SBA requires that the new owner be a principal in the business, so any mention of being passive is going to raise red flags. It’s not to say that you can’t hire a GM, but SBA wants to know that the person they are lending 7-figures to is going to be significantly involved in the business.

How much do you have to have in reserves after the downpayment?

The SBA will want to see around $20-30k left in cash reserves after your downpayment.

💁 Helpful Links (more videos & case studies)

Investment Committee CallThese call recordings will help you understand how Acquira’s team analyzes a deal alongside you. The IC call happens during Phase 1 (The Acceleration Program)and it is one of the final steps you take before you submit a LOI on a deal.Adam: https://youtu.be/RCwfIINE0TUJon: https://youtu.be/nycUADr07iE
Acceleration Program Call With Acquira’s Legal TeamGet a peak into the weekly calls we host during Phase 1 (The Acceleration Program) with our team, vendors, and other acquisition entrepreneurs. These calls keep you sharp, hold you accountable, inspire you, and provide clarity during your acquisition.https://youtu.be/Dd8f5qCOlhI
Acceleration Program Call With Acquira’s Diligence TeamGet a peak into the weekly calls we host during Phase 1 (The Acceleration Program) with our team, vendors, and other acquisition entrepreneurs. These calls keep you sharp, hold you accountable, inspire you, and provide clarity during your acquisition.https://youtu.be/vDR-fqFfLqY
Case Study: Growing a plumbing company acquisitionHow Acquira combined digital marketing and effective management to grow a new plumbing company acquisition in the first 3 monthshttps://acquira.com/how-acquira-grew-new-plumbing-company-acquisition-in-the-first-3-months/
Deal sourcing best practicesBest practices for sourcing on-market deals and getting on a broker’s Top 5 Buyers listhttps://acquira.com/how-connecting-with-brokers-can-help-you-find-more-businesses/
More on and off-market deal sourcing techniquesBuilding scrapers for business listing sites, analyzing digital marketing profiles, and more.https://youtu.be/j8pjnFipOR8
Entity selection, tax optimization & bill of saleInsight into the less exciting but vitally important part of the acquisition process. Acquira provides structured guidance for all of this.https://kylongienger.wistia.com/medias/zs3240hsne
15 questions to ask before you buy a businessHelpful when you’re analyzing dealshttps://acquira.com/15-questions-to-ask-when-buying-a-business/
Case study: What the first 7 days at your newly acquired business should look likeYou just bought a business, now what?https://acquira.com/the-first-7-days-at-your-newly-acquired-business/
Acquira’s blogWe publish new content like the above every weekhttps://acquira.com/blog/