I have spent 15 years buying businesses like yours. I have bought many, but I have said no to hundreds, and that is where I learned what matters. Every no had a reason, and the reasons repeat.

What I look for

I buy businesses because I see opportunity. Every business has it: ways to improve operations, reach more customers, sell more to the customers already there, or grow into new markets. I look for those on every call.

But as a buyer, I have to understand my downside risk first, because it decides whether I can pay for the opportunity at all. So when I first talk to an owner, I am also looking for clear signs of risk. The first things I ask about are why the owner is selling, who runs the business day to day, and why customers choose this business over its competitors. If those answers point to a lot of risk, I pass, or I value the business low enough that I can absorb everything going wrong. Most owners have never heard those questions from the buyer's side until the offer is already on the table.

My background

I am the Managing Partner of B2 Partners, a lower middle market private equity firm in Scottsdale, Arizona. B2 invests in companies with roughly $3 to $25 million of revenue in the Southwest. Before B2, I was a partner for eight years at a family office with more than $1 billion in assets, where I worked on acquiring and growing businesses.

Why I started Homestretch

I kept giving the same feedback to owners who were good at running a business and had never sold one. Many were successful entrepreneurs, close to a sale, who did not know what a buyer would find.

I started Homestretch to help owners realize the value they have built. It puts what I have learned from the buyer's side in front of owners while they still have time to fix things.

What I tell owners

Three things come up in almost every conversation I have with an owner.

Focus

A business that does one thing well sells for more than one that does several things adequately. I once owned a company with three separate consumer brands. Each was successful on its own, but together they made no sense: three marketing campaigns, three supply chains, and one shared back office whose attention was always split. When we went to sell, every buyer wanted one brand and marked us down for the other two. We ended up building a separate back office for each brand just to sell them. If you can describe your business in one sentence, a buyer can value it. Read more in Why focus raises what a buyer will pay.

Owner dependence

If the business works because you are in the room, a buyer is not buying a business. They are buying a job, and buyers pay much less for a job than for a business that runs without its owner. I once walked the floor of a profitable $30 million manufacturer. The owner knew where every piece of material was, what stage each job was in, and when each customer expected shipment. It worked well for him. I knew immediately that if he left for a week, things would fall apart, and that any buyer would have to hire his replacement and build the processes first. I passed. The fix is not complicated, but it takes time: write down what breaks when you are gone for a day, then a weekend, then a week, and fix each break. Your team matters here too. If the people who keep the business running have no stake in the sale, a buyer has to assume some of them might leave, and will price that in. See Seven things a buyer will ask in the first call.

What a buyer can't verify

A buyer pays for what they can confirm, not for what they are told. "Our customers never leave" means little until I can see how many came back last year. "Our margins have improved" means little unless a signed supply contract shows the improvement will last. "Most of our revenue repeats" needs agreements and invoices behind it, and a profit figure needs tax returns and bank records that match. When I can't confirm one claim, I start to wonder about the others, and I lower what I am willing to pay to cover the risk. Owners who can back every claim with a document get paid more. See What is my business worth?.

Questions owners ask me

Does B2 get my information?

No. We will not share your information with B2 or any other buyer without your express consent. You are never obligated to sell to B2, and if B2 ever made an offer it would be on market terms.

Why would I trust a buyer to coach me?

Because I know what a buyer sees, and you usually do not find out until the offer arrives. I have said no to hundreds of businesses, and the reasons repeat. Homestretch puts those reasons in front of you while you still have time to fix them. You are paying for the preparation, and nothing here depends on a sale.

Who creates my report?

I built the Buyer's-Eye Score from years of evaluating businesses like yours. Your report is prepared using analysis built around my approach, and I review and stand behind every one. The call included with the Exit Readiness Plan is with me.

Is the score a valuation?

No. It is a model I built from evaluating hundreds of businesses. It shows what a buyer would push back on. It is not an appraisal.

Disclosure

Homestretch is an independent business affiliated with B2 Partners, a private investment firm that buys businesses. We will not share your information with B2 or any other buyer without your express consent, and you are never obligated to sell to B2. If B2 ever made an offer, it would be on market terms.

Start here

The fastest way to see what a buyer would see is the free Buyer's-Eye Score. It takes about 5 minutes. Questions? Email hello@homestretchexit.com.