⚡ TL;DR:

You did the QoE. You hired the attorney. You reviewed the lease. But did anyone check the technology?

Most searchers never run a technology assessment during diligence, and most sellers have no idea what their IT environment actually looks like. This week, we break down the five findings that show up in almost every small business, the real cost of fixing them (hint: usually cheaper than you think), and how to use the results as negotiation leverage before you close.

Read: QoT for SMB Acquisitions →

Civil engineering and land surveying firm serving residential and commercial development clients in Massachusetts. Sticky client relationships with recurring project work and strong professional reputation.

Why this deal stands out: 46% SDE margin is exceptional for professional services. At 2.5x with $590K in annual cash flow after debt, the economics work cleanly. Engineering and surveying firms benefit from long-term client relationships and repeat business.

💡 EBIT Take: A 45% margin raises a question: is the owner doing all the technical work? Verify how much of the revenue depends on the seller vs. the team. Critical: do you have licensed PEs and surveyors on staff who will stay post-acquisition? If the firm has licensed professional staff and documented processes, you've got a clean transition. If it's seller-dependent, you've got transition risk. Massachusetts' real estate development market is healthy, and project work should stay steady.

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You negotiated the price. You structured the seller note. You locked in the SBA loan terms. Then you signed a personal guarantee that put your house and future on the line — and nobody at the closing table mentioned it twice.

Ink is built to cover the personal guarantee on your SBA acquisition loan. If the business doesn't make it, your personal assets don't go down with it. Built specifically for acquisition entrepreneurs and EBIT readers are getting early access.

23-year-old family medicine practice in Kansas operating as an S-Corporation. Provides primary, acute, chronic, and preventive care services. Recession-resistant revenue model with established patient base.

Why this deal stands out: 23-year operating history with 32% SDE margins and a 2.89x DSCR. Healthcare has built-in recession resistance—people don't stop going to the doctor when the economy softens. At 2.4x, this is fairly priced for the stability it offers.

💡 EBIT Take: Medical practices require a specific buyer profile. You'll need a physician-owner or an operational manager arrangement with a licensed provider. The S-Corp structure may offer tax advantages—check with your accountant. Diligence priorities: payer mix (Medicare/Medicaid vs. commercial insurance), patient volume trends over the last 3 years, and whether the selling physician will stay for a transition period (critical for patient retention).

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Luxury hardscape installation business specializing in high-end outdoor living spaces across southeast Georgia and northeast Florida. SBA preapproved. Differentiated through design quality and craftsmanship. Serves affluent residential clientele with strong backlog. Established 2013.

Why this deal stands out: At 2.8x with $809K SDE, 53.7% margins, and a 3.06x DSCR, the economics are strong. Hardscape and outdoor living rank high in newsletter engagement for good reason: steady demand, solid margins, and owner control. Georgia and northeast Florida market tailwinds make this accessible scale.

💡 EBIT Take: Luxury positioning is both the upside and the downside. In strong economies, affluent homeowners spend freely on outdoor living. In downturns, discretionary projects get cut first. The 53.7% SDE margin is impressive and suggests lean operations. Diligence: verify the customer pipeline (is the backlog 6+ months?), average project size, and whether you have commercial clients alongside residential. If you can diversify into commercial hardscape, you've got countercyclical revenue.

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Used luxury and exotic auto sales business in South Florida with a strong digital presence. Asset-light model with efficient marketing. No franchise agreement required—independent operation with full flexibility on inventory and pricing.

Why this deal stands out: 2.5x multiple with a 2.88x DSCR and 27.5% SDE margins—strong for an automotive business. The asset-light, digital-first model means low overhead. South Florida is a prime market for luxury vehicle buyers.

💡 EBIT Take: This is a used luxury dealer without a franchise agreement—no franchise fees, but also no manufacturer support. The "strong digital presence" is the key asset. Diligence questions: what's the inventory model (consignment vs. owned)? Which channels drive leads? How much of the value walks out with the current owner? If the lead generation is repeatable and the inventory model is capital-efficient, you've got operational leverage.

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Recurring hood and exhaust cleaning services for restaurants and foodservice operations in Naples, Florida. Legally required service—non-discretionary demand. 17 years in operation with established customer relationships. Full training and support included in the sale.

Why this deal stands out: At 0.47x cash flow, this is priced like liquidation, not a profitable operating business. You recoup your $245K investment in under 6 months on verified cash flow. A 15x DSCR is off the charts. The service is legally mandated by health codes—demand isn't going away.

💡 EBIT Take: The obvious question: why is it so cheap? Possible answers: motivated seller, owner burnout, or the numbers need scrutiny. The 17-year track record suggests a real, functioning business. Your diligence mission: verify customer concentration (if one restaurant group is 30%+ of revenue, that's a risk) and contract stickiness (annual contracts or handshake agreements?). If the customer base is diversified and recurring, this could be the best deal in this entire newsletter.

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Disclaimer: Educational content only — not investment advice. Listings from third-party sources; accuracy not guaranteed. Do your own due diligence. Consult with legal, accounting, and financing professionals before making any acquisition decisions. Ink Insurance Services, LLC is a licensed insurance agency. Coverage is subject to underwriting and policy terms.