The Most Overlooked Risk in Business Acquisitions
Everyone analyzes revenue. Few analyze cash flow durability. When looking at a business acquisition, I always ask: • Is revenue concentrated in 1–2 clients? • How dependent is the business on the current owner? • What happens if 20% of revenue disappears tomorrow? • Are margins stable or artificially inflated? A deal can look amazing on paper and still collapse post-close if these aren’t addressed. What’s one lesson you’ve learned from a deal that didn’t go as planned?