How to Spot a Great Business Deal (Even if It’s Not Perfect on Paper)
In today’s market, not every great opportunity will have clean books, flawless branding, or a glowing growth curve. But smart buyers know what to look for beneath the surface.
This post is your guide to spotting hidden value even in businesses that look a little messy.
Don’t just look for perfection in a business deal. Look for potential.
Let’s be real: very few small businesses are perfect. But that doesn’t mean they aren’t valuable.
In fact, some of the best deals we’ve seen at SMB.co started out looking “average.” Why? Because experienced buyers knew how to read between the lines.
Here’s how you can do the same.
1. A motivated seller can be a goldmine for a business deal
People sell for all kinds of reasons: burnout, health, divorce, or simply wanting to retire. A motivated seller isn’t a red flag; it’s often a green light.
Business deals like these are often more about timing and seller flexibility than perfect numbers.
Example:
A cleaning business in Texas had flat sales but an owner was ready to walk away. The buyer negotiated a 25% discount because the seller wanted out fast. Within 6 months, recurring contracts and light tech upgrades increased net profit by 30%.
What to ask:
- Why are you selling now?
- Are you open to seller financing or staying on short-term?
- How quickly do you need to close?
2. Poor marketing ≠ Poor business
Some businesses don’t market well but they still have loyal customers, strong margins, or local word-of-mouth.
That’s your opportunity.
Look for:
- No active social media or paid ads
- Dated website or none at all
- No CRM or email follow-ups
- No Google reviews (or they haven’t asked for them)
Why this matters:
A buyer picked up a small landscaping company doing $400K/year with no website. Within three months of launching a basic site and running Google Local ads, new leads doubled.
Another business deal that looked plain on paper turned into a profitable play with just a few low-cost upgrades.
3. Operational gaps = Opportunity for systems
Many owners run things from their head, not from a system.
You’ll see this in businesses where:
- Scheduling is done on paper
- There’s no documented training
- Inventory tracking is manual
- Staff rely on the owner for everything
If you’re good at the process, this is upside.
Stat to know:
According to McKinsey, small businesses that implement documented systems can increase productivity by up to 30% in the first year.
What to look for:
- Where is the owner still too involved?
- What tasks could be automated?
- Are roles clearly defined?
4. The numbers might be hiding good news
Sometimes messy financials just need sorting.
Don’t immediately walk away if:
- The books are co-mingled with personal expenses
- There are inconsistent P&Ls
- Payroll is paid manually or irregularly
Instead, ask for access to raw data (bank statements, tax returns) and work with an accountant or your deal team to clean things up.
Tip: Use trends, not just totals. If revenue is stable and costs are controllable, that’s a good sign even if QuickBooks is a mess.
5. Look at customer loyalty, not just lead flow
Businesses with strong repeat business can be more valuable than those constantly chasing new customers.
How to spot loyalty:
- High repeat rate or subscriptions
- Long-term contracts or retainers
- Positive Google reviews that mention consistency
Example:
An HVAC business wasn’t growing fast, but 80% of customers had been with them for 5+ years. A new owner added upsell services and increased revenue without adding new customers.
Not all business deals look shiny at first!
The best buyers don’t just look at what is.
They ask: “What could this be with the right tools, time, and systems?”
If you’re willing to dig in, a business deal that’s a little messy on paper might be the smartest investment you ever make.
Not all business deals look shiny at first!
The best buyers don’t just look at what is.
They ask: “What could this be with the right tools, time, and systems?”
If you’re willing to dig in, a deal that’s a little messy on paper might be the smartest investment you ever make.
The best buyers don’t just look at what is.
They ask: “What could this be with the right tools, time, and systems?”
If you’re willing to dig in, a deal that’s a little messy on paper might be the smartest investment you ever make.
