Buy Then Build by Walker Deibel Summary

Buy Then Build advocates for acquisition entrepreneurship — buying established businesses instead of starting new ones — as a faster, lower-risk path to wealth. Walker Deibel provides actionable strategies for identifying, valuing, and acquiring companies, emphasizing financial metrics like Seller Discretionary Earnings (SDE) and leveraging market opportunities like retiring baby boomers selling businesses.

Aspiring entrepreneurs, seasoned business owners, and investors seeking practical guidance on acquiring businesses will benefit most. The book suits those wary of startup risks, interested in immediate cash flow, or looking to capitalize on the $10 trillion transfer of baby boomer-owned businesses.

Yes, for its actionable acquisition framework and real-world examples. It demystifies due diligence, valuations, and post-purchase transitions, making it a standout resource in entrepreneurship literature. Critics praise its blend of strategic insight and step-by-step execution plans.

Acquisition entrepreneurship involves purchasing existing businesses to grow them using entrepreneurial skills. Deibel highlights advantages like reduced risk (vs. startups), immediate cash flow, and leveraging established infrastructure. This approach capitalizes on market gaps left by retiring business owners.

Key steps include:

• Financial analysis: Review income statements, balance sheets, and calculate SDE to determine valuation.
• Market positioning: Assess growth potential and competitive advantages.
• Operational due diligence: Evaluate staff, processes, and customer relationships to identify improvement opportunities.

SDE measures a business’s true profitability by adjusting for owner-specific expenses and non-operational costs. Deibel stresses its importance for setting purchase prices and understanding cash flow potential, making it central to his valuation methodology.

The book emphasizes employee retention and gradual improvements:

• Maintain open communication to build trust with existing teams.
• Implement strategic changes incrementally to avoid disrupting operations.
• Learn from the previous owner during a structured handover period.

• Baby boomer retirements: Over 70% of small business owners plan to sell by 2030, creating a $10 trillion market opportunity.
• Post-pandemic shifts: Increased demand for stable, cash-flowing assets amid economic uncertainty.

Unlike startup-focused guides like The Lean Startup, Deibel’s work targets proven business models, offering concrete steps for acquisition rather than ideation. It complements books like Built to Sell by focusing on scaling purchased businesses.

Deibel advises partnering with investors or pursuing search funds to pool resources. For those committed to startups, he recommends validating ideas using acquisition principles (e.g., prioritizing existing demand).

Some argue it requires significant upfront capital and carries hidden risks (e.g., undisclosed liabilities). However, Deibel counters that thorough due diligence and seller financing options mitigate these challenges.

The book provides a roadmap to transition from employment to ownership by acquiring businesses aligned with your skills. Case studies show how non-traditional entrepreneurs successfully pivoted using acquisition strategies.