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?

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