Acquisitions

Micro-acquisitions

Understand how buying a business doesn't require millions — small, cash-flowing businesses sell at accessible prices, often with the seller financing the deal.

  • Beginner
  • 14 min total
  • 12 chapters

What decision this helps you make: Whether and how to buy a small business at an accessible price.

What this topic is

Micro-acquisitions are purchases of small businesses (websites, newsletters, small stores, local operations) at prices accessible to individuals — typically valued at ~2–3× the owner's annual profit (SDE), and often partly financed by the seller.

Why it matters

Most people think buying a business requires being wealthy — but small businesses sell at low single-digit multiples of profit, and seller financing means you can control cash flow with a modest down payment. At ~2–3× SDE, a business pays for itself in a few years. Understanding micro-acquisitions opens business ownership to ordinary buyers.

Who should learn it

Anyone who wants to buy a cash-flowing business but assumes they can't afford it.

What you will understand

  • Understand SDE and how small businesses are priced
  • See why ~2–3× multiples make businesses pay for themselves fast
  • Know how seller financing lowers the down payment
  • Decide whether to pursue a micro-acquisition

Prerequisites

Common misconception

"You need to be wealthy to buy a business." Small businesses sell for only ~2–3× their annual profit — and sellers often finance part of the deal, so you can control a cash-flowing business with a modest down payment. A business earning $120K/year might cost ~$300K, with maybe $60K down and the rest paid from the business's own profit. Buying is far more accessible than most assume.