Acquisition Collective

The #1 Mistake Business Buyers Make (And How to Avoid It!)

• Jay Bourgana • Season 1 • Episode 5

Thinking about buying a business? 
Whether you're an aspiring entrepreneur, business owner, or investor, this episode is a MUST-WATCH before you make your next move! Mike Jerman, an Air Force captain turned M&A expert, shares insider secrets on how to spot red flags, hidden risks, and financial traps when acquiring a business.

Key Takeaways in This Video:
The biggest mistake business buyers make (and how to avoid it!)
How to analyze financial statements like a pro
The truth about working capital, cash flow, and due diligence
How sellers manipulate EBITDA to inflate their valuation 😲
The #1 red flag banks hate—and why it can kill your deal
The power of accrual vs. cash accounting (and why it matters in M&A)

Don't Get Burned in Your First Business Deal! This conversation is PACKED with real-world case studies, including a deal where an audited financial statement turned out to be completely fake! You’ll also hear why some small business acquisitions fail—and the exact steps to ensure yours succeeds.: 
00:00 - Intro: Why Business Due Diligence Matters 
02:00 - What is GAAP & why it matters in buying a business 
05:20 - Accrual vs. Cash Accounting: What buyers need to know 
08:00 - The cash flow trap that kills businesses 
12:30 - How sellers manipulate EBITDA (real-world examples!) 
16:45 - The biggest financial red flags in business acquisitions 
22:00 - How to negotiate working capital in a business deal 
30:00 - Why off-balance sheet liabilities can ruin a deal 
38:00 - The COVID boom effect on business valuation 
42:30 - How to spot fake revenue & fraudulent bank statements 
50:00 - The most undervalued industries for business buyers

Who Should Watch This? 
✅ Aspiring Entrepreneurs 
✅ Business Buyers 
✅ Business Owners Looking to Sell 
✅ Investors Exploring Business Acquisitions 
✅ High-Income Professionals Seeking Passive Income 
✅ Tech Entrepreneurs & Post-Exit Founders

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Join the Conversation: What’s the biggest challenge you’ve faced when buying or selling a business? Drop your thoughts in the comments! 💬