Are You in the "Sweet Spot"? Here's What Today's Buyers are Actually Hunting For

Let me start with something you probably don't hear enough: If you've built a profitable business that's been around for a few years, you're already in rare air. Most people never get there. That alone deserves respect. 👏

But here's the unfiltered truth I've learned in my nearly 30 years as a business broker: Having a good business and having a sellable business are two completely different animals.

And in 2026? The game has shifted harder than I've ever seen it.

Today's buyers, whether they're Private Equity firms, corporate refugees looking to escape the 9-to-5 grind, or someone who just finished a $3,000 online Mastermind course, are all hunting for the same thing:

Businesses in "The Sweet Spot."

So let's talk about what that actually means. And more importantly, whether your business checks these three critical boxes.

The "Sweet Spot" Defined: What Buyers Are Actually Filtering For

If you're thinking about selling in the next 12-24 months, you need to know this: Buyers are shopping with a checklist.

And if your business doesn't hit these three characteristics? You're either going to get lowball offers, tire-kickers who waste your time, or crickets.

Here's what they're looking for:

✅ Characteristic #1: Real Profitability ($200K+ in Net Earnings)

Let's cut through the noise. Buyers today, even first-time individual buyers, are typically requesting a minimum of $200,000 in net earnings or Seller's Discretionary Earnings (SDE).

Why $200K?

Because at that level, the math starts to work for them. They can:

• Cover the debt service if they're using SBA financing (which most are)
• Leave enough room for a return on their invested capital (fancy words for "the money they actually get to keep")
• Pay themselves a reasonable salary without bleeding the business dry

Now, I know what you're thinking: "But Dave, I write off everything as a tax deduction! My financials don't show that kind of profit!"

I get it. We all do. Minimizing corporate and personal taxes is smart business.

But here's the reality: Buyers don't care about your tax strategy. They care about cash flow they can prove to a bank.

If your SDE is buried under a mountain of questionable "business expenses" (looking at you, country club memberships and that "business trip" to Aruba), you're going to have a problem when it's time to get the business valued and financed.

✅ Characteristic #2: Proven Track Record (The 3-Year Rule)

Here's the second filter: Your business needs to have been around for a minimum of three taxable years.

Why? SBA 7(a) financing.

The SBA 7(a) loan program is the most common way buyers finance Main Street and lower middle-market business acquisitions. It allows them to put down as little as 10% and finance the rest at favorable terms.

But banks won't touch a business unless it has at least three years of documented tax returns. They need to see patterns. They need to see stability. They need to see that your business didn't just have one lucky year.

Now, can a business get sold with just one tax return? Sometimes. I've seen it. But it's rare, and it severely limits your buyer pool. Most serious buyers, individuals, Private Equity groups, family offices, initially filter for companies that meet their minimum earnings AND revenue thresholds but also have well-documented financials so they can leverage SBA financing.

Translation: Three years = credibility. One year = uphill battle.

✅ Characteristic #3: Systems in Place (The "I Don't Want to Work" Shift)

Okay, here's where things get interesting. And controversial. And very, very real.

This is the biggest shift I've personally seen in almost 30 years of doing this:

Buyers today don't want to buy a job. They want to buy a business that runs without them.

And I mean everyone. From legacy Private Equity groups who just completed their Series A funding round and are looking to deploy capital, to the guy who bought a $1,000 Mastermind course on "passive income" and now thinks he can buy a one-man barber shop and never show up.

Let me be crystal clear: This post isn't about whether this shift is right or wrong, ethical or unethical. This is just what it IS.

A decade ago, the "absentee owner" model was really only a focus in the lower middle market and traditional M&A (which, by the way, is just a fancy term for "buying and selling things", don't let the jargon intimidate you).

But now? This mindset has trickled all the way down to Main Street businesses.

I'm talking about:

• First-time entrepreneurs who've never run a business
• People looking for a local service business (HVAC, plumbing, auto repair) that's fully staffed
• Digital nomads who want to buy an e-commerce store they can run from a beach in Bali
• Corporate refugees who want to own something but not work 60-hour weeks

The very first question almost every single inquiry asks now is: "How much time do I have to work?"

Not "What's the growth potential?" Not "What's the customer base look like?"

"How much time do I have to work?"

We have shifted, whether we like it or not, to a society where nobody wants to work anymore. This is no longer speculation. This is no longer a guess. Every professional I know who works on business sales daily can confirm: this phenomenon is now a fact.

The Mastermind Effect: Champagne Taste on a Beer Budget

Here's where it gets even more interesting (and sometimes frustrating for sellers).

Thanks to the explosion of online Mastermind courses, YouTube gurus, and AI-assisted "business acquisition blueprints," we're now seeing a flood of buyers who:

• Have never owned a business
• Have never run a business
• Might not have even had a job
• But now, armed with a $1,000-$5,000 digital course, think they know everything about leveraging SBA loans, seller financing, and "systematized operations"

Some of these folks have champagne taste with beer budgets, or worse, no budget at all. They're looking to:

• Put down as little as possible
• Sometimes even ask for seller financing for the down payment (yes, you read that right)
• Step into a business that's fully automated
• Collect checks while the business pays the debt

Do all of these buyers close deals? No. A lot of them are sold a hope and a dream and haven't really weighed the risks: financially or time-wise.

But here's the thing: The ones who DO have their finances in order and understand the game? They're serious. And they're competing with Private Equity firms and family offices for the same businesses.

What This Means If You're a Seller

If your business checks all three boxes: profitability, proven track record, and systems in place: congratulations. You're sitting in the Sweet Spot.

And right now, in early 2026, that puts you in an incredibly strong position.

Because here's what's happening:

• SBA lending is still accessible and favorable
• Buyers are being taught (through courses, content, and advisors) to look for exactly what you have
• Private Equity groups are sitting on record amounts of capital they need to deploy
• Corporate America continues to burn people out, creating a steady stream of buyers looking for an escape hatch

You have leverage.

But only if you position your business correctly. Only if you can prove the numbers. And only if you have the right broker who understands what today's buyers are actually filtering for.

A Quick M&A Jargon Detox 🧹

Before we wrap, let me strip away some of the fancy language you might hear:

• "Leverage" = Using other people's money (like SBA loans) so the business pays for itself
• "Return on invested capital" = How much money the buyer gets to keep after paying the debt
• "M&A" = Mergers & Acquisitions. It's just a fancy way of saying buying and selling things. Don't be impressed.
• "Debt service ratio" = Can the business make enough money to cover the loan payments? That's it.

Most professionals in my field toss these terms around to sound smarter than they are. I've been doing this for 30 years. I don't need to sound smart. I need to get your business sold for the right price to the right buyer.

Meet Your Strategy Partner

I'm Dave Britton, a licensed business broker with Lobo Business Sales LLC. I've spent nearly three decades helping business owners in Tampa Bay and across Florida navigate exits: from Main Street service businesses to digital companies doing seven figures.

I don't do fancy jargon. I don't do pressure tactics. I just tell you the truth about what your business is worth, who's buying, and how to position yourself to win.

If your business is in the Sweet Spot: or even if you're close: let's talk. No commitment. No sales pitch. Just a conversation about whether now is the right time and what your options actually look like.

Ready to See If You're in the Sweet Spot?

If you're curious whether your business checks these three boxes: or if you want a no-BS assessment of where you stand: let's start a conversation.

Connect with me on Facebook: Lobo Business Sales LLC

Or visit us at LoboBusinessSales.com to learn more about how we help business owners exit on their terms.

Because if you've built something profitable, proven, and systematized? You're in rare air. And you deserve a broker who understands what that's worth in today's market.

Let's make sure you get it. 🐺