Buying Smaller?

searcher profile

March 16, 2026

by a searcher from United States Naval Academy in Dallas, TX, USA

For a long time I thought I was pretty healthy, but recently I got a glucose monitor to learn about the effects of food. Turns out I ate pretty unhealthily; a few tweaks and results followed like magic. It was almost embarrassingly simple. It got me thinking about my search criteria and whether there are small tweaks to make in search that might be helpful. One of my longest held criteria is earnings size; I think I’m changing my mind on lower SDE businesses as a potential “get-on-base” strategy. There are just more of them which should raise the odds of acquiring any one. While compromising on size makes value proposition, revenue quality, and margin more important, I’d hope the increase in funnel volume would be worth it. Especially for those who have acquired companies below initial target earnings range: anything I’m missing in looking at buying and operating smaller businesses?
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commentor profile
Reply by a searcher
from Dartmouth College in Hollis, NH 03049, USA
I'm in the same boat (especially recently after a deal fell apart). That being said, I've found much smaller businesses to generally be less stable and more closely tied to the seller's book of business. Looking at smaller businesses hasn't necessarily made anything easier. Happy to talk further.
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Reply by a searcher
from Drexel University in New Jersey, USA
@redacted‌. I’ll disclaim this with I’ve yet to personally do my first deal. However, some others above have already said this and I believe it to be true. it’s all about going into things eyes wide open and with a plan. Due to geographic constraints I’ve had to look at a lower SDE businesses (lower end = $500-$600k) and I’ve seen a number of well run companies, with a reasonable balance of owner dependency and, where the opportunity to grow is right there but it hasn’t been the focus of a 68 year old owner who’s kids are grown and enjoys his/her Thursday night golf league. I’m part of this community because I value all of the advice/experience of the members. However, as an older searcher who is self funded and looking to buy, own, operate, and grow….I’ve found a lot of the heuristics for traditional search tend to be one dimensional.
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