Mastering Mergers & Acquisitions with Chad Peterson: Strategies for Business Buyers and Sellers
In today’s competitive market, Mergers and Acquisitions (M&A) present unparalleled opportunities for business owners looking to scale, exit, or diversify. It also presents the opportunity for somone to create generational wealth and a legacy.
In this power-packed episode of All Things Locs, hosts Dr. Dan Neissany and Antonio Garcia are joined by Chad Peterson, founder of Peterson Acquisitions and creator of Quantum Stack Investing. With over 25 years of experience in mergers and acquisitions (M&A), Chad brings unmatched expertise as he dives into the strategy, mindset, and grit required to successfully buy and sell businesses in today’s economy.
What Is M&A and Why Should You Care?
Chad starts by demystifying M&A—a term that often feels reserved for corporate giants. Simply put, M&A is the process of buying and selling businesses. And according to Chad, this is where the biggest financial opportunities lie over the next decade.
The Small Business Administration (SBA) has earmarked $5 million for every U.S. citizen to acquire a business, but hardly anyone knows how to access it. That’s where Chad steps in, saying,
“You have $5 million waiting for you. Why was that never taught?”
Chad emphasizes that understanding business valuation is critical in business transactions, as it sets the foundation for acquired assets and the purchase price during any deal.
The Art of the Deal: How M&A Strategies Can Transform Your Business
M&A is more than numbers—it’s an art form. According to Chad, there are a hundred ways to do it wrong and only a handful of ways to do it right. Unfortunately, the space is saturated with so-called experts peddling misinformation and overpromising results without real transactional experience.
Chad shares a personal story of having his 8-hour presentation plagiarized, underscoring a bigger issue in today’s digital age: people chasing quick wins without putting in the time, effort, or experience to deliver real value. He stresses that due diligence is paramount before engaging in business transactions to ensure that both the buyer and the acquired firm are aligned in terms of financial performance and intellectual property valuation.
When considering a sale agreement, it's essential to assess the roles of both the management team and the potential buyers. In some cases, a hostile takeover could be a risk if two companies are competing for market share. In these situations, it’s crucial to analyze the balance sheet and determine whether an asset purchase or full acquisition of one company is the best approach.
How Chad Got Started in M&A
Chad didn’t dream of becoming a business broker. He stumbled into it after selling his first business—a landscaping company he hated but had built successfully. A buyer offered him nearly three times his annual income for it, sparking his journey.
“Wait a minute… I can build something, get tired of it, and sell it for a profit?”
This realization led him to become a commercial pilot, but after 9/11 grounded his flying career, he returned to what he knew best: building and selling businesses. Chad’s personal experience in business ownership shaped his understanding of the purchase price and how it correlates to financial data and business assets.
The Starting Line: How to Break In
Chad keeps it simple for those wondering where to start: read his book, Quantum Stack Investing. This 420-page guide covers both beginner fundamentals and advanced strategies for aspiring business acquirers.
“Nobody makes money off books. I wrote it to teach people how to actually do this.”
Chad warns against empty advice, like walking into businesses to shake hands and say you want to buy them—especially if you don’t have any money. Instead, he emphasizes education, strategy, and alignment with a proven team. Understanding business models and how to analyze a cash flow statement are key to making smart acquisitions.
Busting the Myths: No Money Down and Boring Businesses
Chad doesn’t shy away from calling out misinformation. He criticizes the popular "no money down" approach and the idea that anyone can become wealthy by buying laundromats or car washes.
“You're not going to buy a laundromat and become a millionaire. That’s snake oil.”
He breaks down how car washes are often just tax depreciation plays for high-net-worth individuals, not viable income streams for average buyers. Chad urges prospective buyers to focus on businesses with strong financial performance and tangible assets, not unrealistic promises.
Strategy is Everything: Know Your End Game
The key to successful business acquisition? Know your strategy.
Chad outlines key strategies for business buyers:
Are you buying for cash flow?
Are you buying for depreciation?
Are you buying to grow and sell?
Each path requires different skill sets and support systems. Chad stresses that most people don’t know how to scale a business—they need guidance, even if they don’t realize it. With the right understanding of acquired company business assets, it’s possible to make strategic decisions that lead to significant returns.
In addition, having a solid exit strategy helps the selling business maximize its value, whether through a sale to private equity firms or another strategic buyer. With the right plan in place, business owners can set the stage for long-term growth and a seamless transition.
Scaling = Failing (Without a Plan)
Chad shares a harsh truth: many businesses fail not because they didn’t grow, but because they grew without structure.
“Scaling equals failing when you don’t have a plan.”
Even Michael Jordan had coaches. Business owners need them too. Many people grow by spending profit to chase more profit, often digging a deeper hole instead. The key is to understand how to manage the financial data during this process and ensure that the acquired assets are scalable.
The Role of Mindset in Business Acquisition and Scaling
Business isn’t just financial—it’s deeply psychological.
“As a man thinketh, so he becomes.”
Chad discusses the importance of mindset and overcoming the “terror barrier”—the fear that paralyzes people when stepping into the unknown. He explains that people talk themselves out of success far more than they talk themselves into it.
Here’s the kicker: you don’t need to have worked in an industry to own a business in it. The seller will train you. All you need is the mindset and strategy. That’s why due diligence and understanding the target company's financial statements are so vital before making the decision to buy.
The $68 Trillion Opportunity
We are on the brink of the largest transfer of wealth in history. $68 trillion is about to change hands, with $10 trillion in business sales. Many of these businesses are being sold by burned-out owners ready to retire.
Smart families are helping their kids skip the corporate ladder by buying existing cash-flowing businesses instead. This is an opportunity that could radically change how we think about business ownership and building wealth.
The Passion Cycle: Know When to Sell
Chad introduces a concept he calls “The Passion Cycle”:
Obsession → Passion → Burnout → Boredom.
The smart move? Sell while you're still passionate. Don’t wait until burnout hits. Selling at the right time means leveraging the value of intellectual property and business assets before they lose their appeal.
Why Most Brokers Fail You
Chad differentiates between paycheck professionals and real exit strategists. Most brokers just want their commission. Chad builds long-term strategies that also consider what to do with your money after the sale.
“Liquidity leads to wealth. Paychecks lead to poverty.”
He challenges listeners to ask themselves what they really want. Once that’s clear, the financial roadmap can be built in reverse. Understanding the key financial performance indicators and being aware of business models will help streamline this process.
How to Make Your Business Sellable
Want to sell your business for top dollar? Here’s what you need:
Show your earnings – Stop hiding income. Show real profit.
Pay your taxes – It builds legitimate valuation.
Create systems and processes – Make sure the business runs without you.
Set boundaries – Don’t let the business depend solely on your availability.
Bonus tip: Have all your advisors in the same room. That means CPA, marketer, lawyer, coach, and broker should all understand the strategy and goals. Without proper due diligence, even the most successful businesses can miss out on significant opportunities.
Final Advice for Aspiring Buyers and Sellers
If you’re serious about buying or selling a business:
Read Quantum Stack Investing
Surround yourself with professionals
Build a strategy based on what you want
Don’t fall for quick-fix advice
Ready to Take Action?
If you’ve ever thought about buying a business, scaling what you have, or exiting for a major liquidity event, it’s time to get serious.
📖 Grab Chad Peterson’s book, Quantum Stack Investing
🌐 Visit ChadPeterson.com to connect with his team.
🎧 And keep tuning in to All Things LOCS for more no-fluff, high-impact conversations that put you back in control of your business journey.
Ready to Scale Your Business, Maximize Its Value, or Don’t Know Where to Start?
If you’re struggling with scaling your business, unsure how to run it effectively, or simply want to increase its value for a future exit, Best Practice Strategies is here to help. Our proven systems and expertise in leadership, operations, and strategy can help you navigate the complexities of business growth and acquisition.
Whether you're just starting out or looking to take your business to the next level, reach out to Best Practice Strategies today. Let us guide you in creating a business that not only thrives today but sets you up for long-term success.
Contact us now and let’s get started on building the business you’ve always envisioned.
