Small Acquisitions are Hard

In partnership with

Was this email forwarded to you? Sign up here

There are many companies shopping right now. Completing a deal is tough.

We hear constantly about the great American wealth transfer, which typically is talking about small and medium, mom and pop businesses that need to be sold over the next 10+ years. From dry cleaners, to restaurants, to plumbinging businesses to everything in between. But in addition to all these companies, there are thousands of VC or investor backed companies that have grinded for years, have anywhere from $100k-$5m in revenue, and are looking for an exit.

The small acquisitions, the tuck-ins, are interesting, but they are so hard to execute. How much are they really worth? Will the investors be happy if they get their money back or just 10 cents on the dollar? How do you execute an earn-out? Is it possible to structure a deal with minimal legal costs? Don’t get me started on egos on both the buyer and seller sides. And not just the founders, but the advisors and senior leadership teams.

The idea of a small tuck in or a roll up of small businesses is sexy. It sounds great. But executing, building a relationship with the sellers is a pain and a giant mountain to climb.

All that being said, there is a great opportunity, and for those who can execute will likely see some tremendous opportunity.

StartEngine’s $30M Surge — Own a Piece Before June 26

Private markets are having a moment, thanks to companies like StartEngine.

The leading alternative investing platform is helping everyday investors like you access deals once reserved for VCs and insiders, including exposure to private market titans like OpenAI, Databricks, and Perplexity.¹

How’s it going? In Q1 2025, StartEngine pulled off $30M in revenue, its biggest quarter ever (based on unaudited financials).²

But StartEngine isn’t just a middleman. The company earns 20% carried interest on select pre-IPO offerings, unlocking value for shareholders when these deals succeed.³

How can you tap into this diversification play? By investing in StartEngine.

StartEngine has crowdfunded $85M+ to date, and you can join 45K+ shareholders before the company’s current round closes on June 26.

Reg A+ via StartEngine Crowdfunding, Inc. No BD/intermediary involved. Investment is speculative, illiquid & high risk. See OC and Risks on page.

Reply

or to participate.