The #1 Mistake Buyers Make (and How to Avoid It)
Why chasing the wrong deals wastes time, leverage, and money
Bryan Hunsinger
July 03, 2025
In partnership with
Most first-time (and even experienced) acquirers fall into the same trap:
They get excited too early.
They find a “promising” SaaS app… or a cash-flowing service business…
And before they’ve done real diligence, they’re already talking price.
Big mistake.
The #1 error buyers make?
Chasing deals they shouldn’t be in.
The Emotional Hook is Dangerous
The seller sounds sharp.
The product is interesting.
The financials “kind of” check out.
So what happens?
You start crafting a mental deal
You begin justifying issues
You rush into an LOI before confirming the fundamentals
This is how buyers waste months on bad targets, and burn leverage on the ones that matter.
Here’s What You Should Do Instead
✅ Start With Criteria
Before you look at any business, define:
Revenue range
Industry or model fit
Owner involvement level
Profit margin minimums
Deal structure constraints
If it doesn’t check 80% of your boxes, walk. Fast.
✅ Use a Screening Framework
A good acquisition framework has 3 tiers:
Strategic fit – Does this align with your goals or portfolio?
Operational reality – Will you inherit something stable or chaotic?
Financial health – Is the cash flow real and sustainable?
If it fails any one of those, move on.
✅ Disqualify Fast
Be ruthless about passing. The faster you say no, the more time you free up for better opportunities.
In M&A, your biggest edge isn’t money.
It’s focus.
Get Matched With the Best HRIS/ATS Software, for Free!
Researching HR systems shouldn’t feel like a second job.
The old way meant hours of demos, irrelevant product suggestions, getting bombarded with cold emails and sales calls.
But there’s a better way.
With SelectSoftware Reviews, spend 15 minutes with an HR software expert and get 2–3 vendor recommendations tailored to your unique needs—no sales pitches, no demos.
SSR’s free HR software matching service helps you cut through the noise and focus only on solutions that truly fit your team’s needs. No guesswork. No fluff. Just insights from real HR experts.
Why HR teams trust SSR:
✅ 100% free service with no sales pressure
✅ 2–3 tailored recommendations from 1,000+ vetted options
✅ Rated 4.9/5 by HR teams and trusted by 15,000+ companies
Skip the old way—find your right HRIS/ATS in a new way, for free!
The Opportunity Cost of Chasing a Bad Deal
Every week spent on a misaligned target means:
You’re not talking to other sellers
You’re not building your pipeline
You’re burning your own momentum
A bloated deal funnel is worse than no funnel at all.
Think Like a Fund, Even If You’re Solo
Top-tier buyers don’t chase deals.
They filter them.
They score them.
They pick their spots.
And when they find the right one, they move fast and negotiate from strength.
Want better outcomes?
Say “no” more often, and sooner.
Reply