How I Approach Marketing Spend in Small Business Acquisitions
March 01, 2026 · Dr. Connor Robertson
When I buy a business, one of the first levers I examine is marketing spend. Over time, I’ve learned that how a company spends on marketing is often more important than how much it spends. Some businesses waste money on ineffective campaigns, while others underspend and rely too heavily on word of mouth. The sweet spot is consistent, efficient spending that generates predictable customer acquisition.
Why Marketing Spend Matters
Marketing spend matters because it:
- Fuels lead generation and sales growth
- Reveals efficiency through return on ad spend (ROAS)
- Determines the scalability of customer acquisition
- Shapes brand awareness and positioning
- Impacts valuation by proving predictable revenue pipelines
A business that treats marketing as an investment, not just an expense, is far more scalable.
My Early Mistakes
In one acquisition, I assumed marketing spend was efficient because the company had strong revenue. In reality, the seller had been overspending on ads without tracking results. Profitability collapsed when I cut wasted spending.
In another case, I underestimated how little marketing investment was being made. The company relied entirely on referrals. Growth was capped because there was no scalable acquisition channel.
Both mistakes taught me that marketing spend must be analyzed for efficiency, not just totals.
How I Evaluate Marketing Spend
During diligence, I ask:
- What percentage of revenue is spent on marketing?
- How is that spending allocated across channels?
- What is the cost of customer acquisition (CAC)?
- What is the return on ad spend (ROAS)?
- Are campaigns tracked with data or run on instinct?
How I Approach Spend Post-Acquisition
- Reallocate budget to high-performing channels
- Cut waste in campaigns with poor ROI
- Test new channels for scalability
- Build systems to track CAC and LTV against spend
- Focus on predictable, repeatable campaigns
Final Thoughts
I’ve learned that marketing spend is one of the best indicators of scalability in acquisitions. That’s why I study it closely and optimize it after closing. Because in the end, growth doesn’t come from spending more, it comes from spending smarter.
I continue sharing my acquisition strategies at drconnorrobertson.com, where I break down how I evaluate and optimize marketing systems.
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