What kind of person should actually buy a business, and who should not? In this episode of Before You Buy or Sell a Business, Jared Johnson talks with David Barnett, former business broker, author, and small business advisor, about what buyers need to know before stepping into business ownership. They cover who should and shouldn’t buy a small business, how the acquisition landscape has changed, and the mistakes new buyers make by relying on online content instead of real experience. David explains why he left the brokerage world, what many buyers get wrong about business financials, and how to approach deals with clarity, caution, and the right strategy. David shares his background in finance and brokerage, how online hype has led to a wave of underprepared buyers, and the red flags they often miss, like ignoring balance sheets, underestimating CapEx, and failing to plan for operating capital. He breaks down the risks of over-leveraging, why not all boomer-owned businesses are good targets, and gives practical advice for new buyers: build capital, get experience, and avoid rushing into the wrong deal. Main Takeaways: • Buying or selling a business requires experience and due diligence • Most first-time buyers underestimate risk and overestimate deal quality • Financial understanding must go beyond the profit and loss statement • Not all listings are good opportunities • Mistakes can be avoided with the right guidance and preparation Episode Highlights: [03:13] The realities of working as a business broker [12:10] Red flags in financials, including missing balance sheets and CapEx [13:08] Why operating capital is often ignored during valuation [15:46] The CapEx trap: why SDE and EBITDA don’t tell the whole story [17:07] How to budget for equipment replacement [22:24] What to watch for with deferred maintenance [24:59] Why understanding what you're buying is more important than price [27:37] Risk varies with the buyer; no one-size-fits-all deal [32:21] Why there’s no such thing as a risk-free acquisition [39:40] Who should actually buy a business