How I Built a Deal Around the Right Person

I knew someone who would make an excellent business owner. The drive was there. The work ethic was there. The availability was there. What wasn't there was a deal, a structure, or a clear path to get into one.

So I went looking for the right business and the capital to match.

Most people start by finding a deal and then figuring out if they can afford it. I'd done that too. But I've learned that deals come together when you're resourceful, and being resourceful means you don't need to have everything figured out before you start. What you do need is the right people.

That's what I've come to believe after years of buying and building businesses. The people matter most. Capital can be found. Deals can be found. The right operator is the hardest piece to replace.

So this time I started there. When I found the business, I ran it by my operator first. Once he said yes, I went to work on the capital and the structure to close it.

My operator was wrapping up a big project and was ready for what came next. The timing was good. He didn't know the target industry any better than I did, but that wasn't the point. I knew his work ethic, how he handled people, and how he showed up when things got hard. That was enough to build around.

Once he was in, the search got more focused. I wasn't looking for a business I could run. I was looking for a business he could run well. That's a different search entirely, and a more specific one. Specific searches move faster.

I found a local service business that made money, had loyal customers, and had an owner who was ready to sell. Somewhat simple to run, with room to grow. A good fit for our small team.

I found a relative who could cover the down payment, and we used an SBA loan for the rest. Because it was an SBA loan, the operator needed to own at least 51% of the business, and he was willing to personally guarantee it, which made sense given his role. The remaining equity was divided between the investor and one of my companies. I stayed involved for a period after close because I knew I'd learn a lot from the experience, and I did.

The business was ‘profitable’ (“cash flow positive”) by month three. It has paid out six figures every year since, split between the three of us based on our shares.

But the number I'm most proud of isn't the revenue. It's this: my operating partner ran that business better than I ever could have.

I knew that before we closed. That's exactly why I started with him. The right person in the right business will always outperform the wrong person, no matter how smart or motivated that wrong person is.

When he went through a difficult personal season and couldn't show up the way he normally did, I stepped in to help carry things. That's one of the things I genuinely value about collaborative acquisitions, especially for your first deal or two. When life happens, a good partner structure means the business doesn't have to suffer.

That said, be careful about who you bring in. I've made mistakes on other projects by partnering with the wrong people. Those mistakes cost me time, money, and energy I didn't have to spare. Here's what I've learned from them.

If you can, test a potential partner on a smaller project first. Not every situation allows for it, but if you've already worked together on something, you'll know how they handle pressure, disagreements, and the unglamorous parts of getting things done.

Make sure you understand each other's strengths and weaknesses. If someone can't name their own weaknesses or won't talk about them honestly, that's a signal worth paying attention to. Self-awareness matters in a partner.

Be clear about expectations from the start. If you weren't clear enough early on, be willing to work toward a better agreement rather than let things fester. But if it's not working and you've genuinely tried, walk away. The wrong partner in a deal costs far more than no partner at all.

If you've been waiting until you have enough money or enough time to buy a business, here's something worth sitting with.

Enough is not a number. It's a structure.

Someone with $500K who closes a deal without the right operator will often struggle more than someone with $150K who has the right person by their side. Money is one piece. It's not the whole thing.

When I look at a deal now, I don't start with what I have. I start with who I know. Is there someone in my world who would be an excellent operator for this type of business? If yes, I go find the deal and the capital to match. If no, I keep building relationships until the answer is yes.

That's not a workaround. That's just how good deals get built.

Think about the people in your network. Who do you know that would be an outstanding operator of a small business? Someone with the work ethic, the people skills, and the hunger to own something, but maybe not the deal or the path to get there.

Write that person down.

Then ask yourself what kind of business they would run best. What industry fits their background? What size feels right for where they are now?

Your next deal might not start with a listing. It might start with a conversation you haven't had yet.

The best deals I've been part of all started the same way. Not with a number. With a person.

Want to know where you're starting? Take the Buyer-Business Match Assessment — 17 questions that tell you exactly which profile fits your current capital, experience, and life situation, and what kind of business you're actually positioned to acquire.

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