Why most business acquisitions fail (and how to do it right)
I’m flipping the script to talk about buying, not selling businesses this week. Read on, it remains super relevant as at some stage, you’ll likely be on one side of the transaction….
"Any idiot can buy a business. But it takes a hell of a lot more than that to integrate it and make it successful." - Mike Marr, TPT Group
Mike’s a serial acquirer; over the years, he’s led 15+ acquisitions, building a multi-million dollar empire by strategically acquiring and integrating businesses the right way.
When we sat down for 2 Commas, he shared so many insights that every business owner, CEO, and investor should hear.
Why so many acquisitions fail
Most M&A deals go wrong for one of three reasons:
Buying the wrong business – If it’s not aligned with your core strengths or future strategy, it’s a distraction. Not an opportunity.
Underestimating integration – The deal isn’t done when the paperwork is signed. Culture, systems, and leadership must align for it to work.
Overpaying based on a ‘hockey stick’ dream – Sellers love showing you their “about to explode” revenue projections. But the past performance—and sustainable earnings—matter most.
The 5-Phase formula for acquisitions that work
Mike follows a five-step framework to ensure that every business he buys isn’t just a short-term win—but a long-term success.
Trust & Alignment – Before money is even discussed, he builds a relationship with the seller. He asks: What was your dream for this business when you started it? If values don’t align, the deal won’t work.
Pricing & Terms – He doesn’t negotiate just to squeeze a deal—he looks for fair pricing backed by real numbers, not future hopes. Earnouts? Rarely.
Business as Usual – The day after an acquisition, employees and customers need stability. People first, then process.
Learning Before Changing – Instead of gutting a business, he first studies why it was successful. Every business he’s acquired has had something to teach him.
Transforming for the Future – Integration is only complete once the business is stronger than before. One plus one must equal three, not two.
What this means for Founders thinking about an exit
Even if you’re not acquiring, this matters if you ever plan to sell your business. The most attractive businesses to buyers:
Have sustainable earnings, not just short-term wins
Don’t rely on the founder for survival (buyers don’t want a business they can’t run without you)
Have clean operations, clear financials, and scalable systems
Whether you’re scaling to exit or looking to acquire, the game isn’t just growth—it’s building something valuable.
Need a fresh strategy to scale, attract buyers, or exit at the highest valuation?
Let’s talk.
