Hardest thing about buying your first SMB? Deciding which biz in your pipeline is “good enough.” There are a million criteria checklists (e.g., HBS Guide) and rules of thumb. But nothing beats experience (and quality advisors/mentors) to help you make the really hard decisions…

Maybe it’s a pesky customer concentration issue, a biz with CapEx needs when you wanted something asset light, a price that’s a half turn too expensive, or a seller that wants to roll a little equity when you want to own 100%. When do you bend your own rules to get a deal done?

There is no perfect biz with a perfect price. Searching for perfection is part of what causes Search to take 2 yrs on avg– I made that mistake. It takes time & reps to know when to bend your rules, get a deal done and get into the driver’s seat (which is where the magic happens).

In SMBs, the operator can absolutely move the needle and make an imperfect deal worth doing. Just be clear and honest about the problems you can fix, the problems you can live with, and the problems you can’t (especially if you are going to be the operator).