
When I first started exploring acquisitions, I was surrounded by myths. Some came from brokers, some from other buyers, and many from people who had never bought a business in their lives but felt confident giving advice. Over the years, I’ve discovered that these myths hold people back from opportunities or push them into bad deals.
What I want to do here is debunk the biggest myths I’ve encountered about buying businesses. These are the misconceptions I wish someone had cleared up for me when I began. By addressing them, I hope to give clarity to anyone considering acquisitions as part of their journey.
Myth 1: You Need Millions in Cash to Buy a Business
This is the myth that keeps most people on the sidelines. They assume buying a business is only for wealthy investors or private equity firms with deep pockets. The truth is, most small and mid-sized business acquisitions are financed creatively.
I’ve bought businesses using seller financing, SBA loans, installment sales, and even vendor credit. I’ve structured deals where my personal cash outlay was only a fraction of the purchase price. The reality is that acquisitions are not about having piles of cash, they’re about structuring deals intelligently.
Myth 2: A Business for Sale Must Be a Bad Business
Another myth I hear often is that if someone is selling, something must be wrong. That’s simply not true. People sell for all kinds of reasons: retirement, burnout, relocation, family circumstances, or even the desire to pursue new ventures.
I’ve bought businesses that were healthy and profitable, simply because the owner was ready for their next chapter. Assuming every business for sale is broken prevents buyers from seeing real opportunities. The key is due diligence, not suspicion.
Myth 3: Buying a Business is Too Risky Compared to Starting One
I’ve met aspiring entrepreneurs who believe it’s safer to start from scratch than to buy an existing company. In my experience, the opposite is usually true. Starting from zero means no customers, no cash flow, and no brand recognition. Buying an existing business gives you a head start with established revenue, systems, and reputation.
Yes, acquisitions carry risk, but that risk is visible through due diligence. Starting a company has hidden risks that don’t surface until years later. I’ve found that buying a business, when done carefully, can be far less risky than launching something brand new.
Myth 4: You Have to Know the Industry Inside and Out
This myth stops a lot of people from looking at deals outside their comfort zones. I used to believe it myself. Then I bought companies in industries I had no prior experience in and learned that leadership, systems, and management often matter more than technical knowledge.
That said, I don’t walk in blind. I surround myself with advisors, hire managers with expertise, and learn the fundamentals quickly. What I don’t do is let a lack of prior industry experience stop me from acquiring a strong company.
Myth 5: All the Value is in the Financials
Financials matter, but they are not the whole story. I’ve seen businesses with strong numbers that collapsed because culture was toxic or customers were tied only to the owner. I’ve also seen businesses with mediocre numbers but excellent people and systems that thrived after acquisition.
The myth that numbers are everything blinds buyers to operational, cultural, and market risks. In reality, financials are just the starting point.
Myth 6: The Seller Will Always Walk Away at Closing
Many buyers assume that once the deal is done, the seller disappears. While that happens sometimes, I’ve negotiated transitions where sellers stayed involved for months or even years. In fact, the best deals often include structured transitions.
Sellers want to see their legacy preserved. They often care deeply about employees and customers. If you structure it right, they can remain an ally long after the ink dries.
Myth 7: Every Business Can Be Fixed Easily
This is a dangerous myth. Not every business can be turned around, no matter how optimistic the buyer is. Some companies have structural flaws, market weaknesses, or reputational damage that is too difficult to overcome.
Early in my journey, I believed I could fix anything. I learned the hard way that some problems are bigger than they look. The key is knowing when to invest energy in improvements and when to walk away.
Myth 8: Bigger Deals Are Always Better Deals
It’s tempting to think that the larger the business, the better the acquisition. Bigger deals come with more revenue, more employees, and more prestige. But they also come with bigger risks, more complexity, and heavier leverage requirements.
Some of my best deals have been with smaller businesses that were overlooked by others. They were easier to manage, had stable cash flow, and provided excellent returns. Bigger isn’t always better; smarter is better.
Myth 9: You Have to Win Every Negotiation Point
New buyers often treat negotiations like battles, assuming they must win on every term. In reality, the best deals are about alignment, not domination.
I’ve learned to identify what matters most to me and what matters most to the seller. If I can focus on the points that are less important to me while holding firm on what I truly need, both sides walk away satisfied. Negotiations built on respect close faster and transition more smoothly.
Myth 10: If It Looks Good, You Can Skip Diligence
This is one of the most dangerous myths. A clean set of financials and a charming seller can lull buyers into complacency. But diligence is where the truth emerges.
I’ve uncovered hidden liabilities, customer concentration risks, and compliance issues only because I refused to cut corners. Deals that look good on the surface can hide major problems underneath. The discipline of diligence protects you from expensive mistakes.
Myth 11: Acquisitions Are Only for Big Firms
This myth is one of the most damaging. Many small business owners assume acquisitions are reserved for large private equity funds or corporations. In reality, small buyers like me are often the perfect successors for local businesses.
I’ve bought companies with fewer than twenty employees. I’ve seen deals under a million dollars change lives. Acquisitions aren’t just for Wall Street they’re for anyone willing to learn the process and put in the work.
Myth 12: Success Comes from Finding the Perfect Deal
Another myth is that success depends on discovering the unicorn business that checks every box. The truth is, success comes from looking at many deals, learning from each one, and developing pattern recognition.
I’ve looked at hundreds of businesses I never bought. Each review sharpened my ability to see risks and opportunities. Success isn’t about one perfect deal, it’s about building skill over time.
Myth 13: Acquisitions Are All About Money
Finally, one of the myths I hear most often is that acquisitions are purely financial transactions. My experience has been the opposite. Acquisitions are about people. They’re about trust between buyers and sellers, respect for employees, and alignment of goals.
The money matters, of course, but deals succeed or fail because of relationships. Recognizing that truth has changed the way I approach every acquisition.
Final Thoughts
Buying a business is one of the most impactful decisions an entrepreneur can make, but too many people are held back by myths. They think they need millions, or they believe sellers only sell broken companies, or they assume every deal is too risky. These myths stop them from even exploring opportunities.
What I’ve learned is that acquisitions are accessible, manageable, and profoundly rewarding when approached with discipline. The myths don’t hold up under experience. What matters is diligence, structure, and respect for people.
If you’re serious about acquisitions, start by clearing these myths from your mindset. Replace them with reality. The opportunities are out there, but only for those willing to see past the misconceptions.
I continue sharing my lessons on acquisitions, real estate, and private equity at DrConnorRobertson.com, where I document not just the successes but also the hard-earned lessons of building businesses through thoughtful buying.