Acquisition Criteria & Buyer Profile

Quick reference guide for business brokers. All key criteria at a glance.

I. Financial Criteria

Financing

Private Capital

Target SDE

$500k+

Valuation

$1M - $5M

II. Industry Targets

1

Specialty and Niche Contractors

Examples

Electrical, Telecommunications, Security, Fire-Alarm, Sound-Proofing, Energy Efficiency

Key Qualifiers

  • Owner is a craft expert (15+ years of experience)
  • Business has 10+ recurring service/maintenance contracts
  • Requires seller to stay on as RMO (Responsible Managing Officer - see "Deal Structure" section)
2

Asset-Light Logistics & Data

Examples

3PL/Freight Brokers, B2B Workflow Optimization, Data Processing Services

Key Qualifiers

  • Asset-Light Model (No owned trucks, warehouses, or heavy machinery)
  • Business is reliant on outdated or manual systems (spreadsheets, old databases) for mission-critical functions
  • Clear opportunities for technical optimization (routing, load matching, scheduling)
3

High-End B2B Service Firms

Examples

Financial Process Outsourcing, Specialized Accounting, Technical Recruiting

Key Qualifiers

  • High-margin, project-based, or retainer revenue model
  • Growth is currently capped by operational bottlenecks (e.g., manual processes, chaotic client fulfillment)

III. Geography

Primary

Sacramento Metro Area / East Bay, Remote

Secondary

SF Bay Area / Central Valley fringe

IV. Buyer Profile

Analytical Discipline

M.S. in Applied Math & Statistics; Certifications in AI, Supply Chain Optimization, and Financial Modeling.

Scaling Experience

Experience at three acquired/IPO'd tech scale-ups (Snowflake, LinkedIn, TripAdvisor). Consulted for PE firms buying HVAC companies.

Hands-On Experience

Own/operate a data consulting business (databuddy.us). Prior multi-unit franchise owner. Electrical crew volunteer (Habitat for Humanity).

Buyer Type: Hybrid Individual/Financial

I am a disciplined operator investing my own capital, which requires a thorough diligence process. I will be hands-on, focused on learning the craft, supporting the team, and growing the business; not stripping it down.

V. Deal Structure

Handling 'Messy' Deals & Owner Dependency

I handle complexity others avoid. Where buyers see 'messy books' or owner dependency as roadblocks, I see solvable challenges. Creative deal structures (seller financing, earn-outs) align interests and de-risk transitions — enabling me to close on quality businesses others pass on.

Contractor License Requirement

Licensing Status

I do not hold a CSLB license; I have 36/48 months experience via owner-builder projects, Habitat for Humanity, and educational credits).

Solution

The seller or qualified 2nd must serve as the Responsible Managing Officer (RMO) for a guaranteed 1 year term. This necessity requires a highly collaborative deal structure (Seller Note, Rollover Equity, Earn-Outs).

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