Most first-time buyers lose deals before they even reach LOI stage—and according to SBA lender Alan Peterson, it’s because they’re trying too hard to look like private equity instead of acting like real operators.
In this episode of Jackquisitions, Jack and Alan break down what actually helps acquisition entrepreneurs win deals in today’s market. From building credibility with brokers and sellers to avoiding the “fake holdco” trap, this episode is packed with tactical advice for first-time buyers.
In this episode:
• Why “LARPing as private equity” hurts buyers
• How brokers and sellers evaluate acquisition entrepreneurs
• Why authenticity beats flashy branding
• The importance of SBA prequalification before outreach
• How LinkedIn and online presence impact credibility
• Why operators often win deals over PE groups
• Common mistakes buyers make when approaching sellers
The takeaway:
The buyers winning deals today aren’t pretending to be billion-dollar funds. They’re authentic, operationally credible, and prepared before they ever contact a seller.
Follow Alan Peterson:
X: @AlanPetersonSBA
💼 Special Thanks to First Internet Bank
Looking to buy or grow a business? First Internet Bank is a National Preferred SBA lender focused on skilled trades acquisitions. Get up to 90% financing for acquisitions, partner buyouts, and commercial real estate—plus optional lines of credit for growth.
They take a “how can we” approach, helping both first-time buyers and experienced operators get deals done.
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Targeting an aggressive roll-up strategy for a $1 billion exit. Okay, cool. Like you don't own a business.
What do you see has been working for people who are searching to buy their first business?
You're not just trying to find a business because you can't find a double block that pencils in the current rate environment.
Statistically sell more to operators, either in-industry operators or people who can show that they have a history of operation.
You don't need to be hyper PE guy.
He is a longtime guest on the show. Alan, good to have you back. How are you doing?
Jack, I'm doing great. It's really great to see you again. Uh, last time I had the pleasure of connecting with you, of course, we were in the great state of Texas for SM Bash. In case you didn't recognize me, Jack, I did, in fact, uh bring this hat that uh it still looks kind of funny on me. But uh, you know, shout out uh to Jared for bringing us there. But that that was a that was a lot of fun, and we got to connect with some great people, and uh it was a good thing. But it's it's good to catch up with you, man. How's everything been on your end?
Uh it's been good. We've just uh a lot of uh post-acquisition integration um with John, and but nothing to complain about. We're going into our busy season. That that means it's easy. Uh, we're not fighting over leads, so it's all all good on that end. Um, but speaking of acquisitions, um, you know, you posted something the other day, what like three days ago that was that got a lot of buzz, really interesting. Uh, and I know I've shouted it from rooftops before, but I want to hear your take on it. Is the the framing of acquisition entrepreneurs prior to talking to their first brokers? Like, what should they be doing and how should they be setting themselves up to succeed? If you're buying a business, financing can make or break a deal, which is why I work with Alan Peterson from First Internet Bank. Not only is he a good friend, but he is the best in the business. He's closed over 90 million in SBA loans, specifically in the skilled trades and manufacturing industries in the last year alone. He's the kind of banker that works with how to get this done, not if it can get done. Hit the link in the description below to get a good faith deposit plus a free deal review. He also does pre-buyer qualifications as well. Click it. Alan Peterson, first internet bank.
Yeah. I mean, ultimately, I was surprised the response that that gotten. Um, the reality is that we see folks very often that are coming across too, I want to say they're almost overrepresenting who they are or what they're really doing. And it's really to their own detriment, right? Um, not being cheesy and saying, you know, just talk about all you care about is preserving the legacy. Obviously, you should include that. Anybody listening that's pursuing an acquisition, be it the first time or even looking at a strategic. Maybe they built something up and now they're looking for inorganic growth. Respecting the seller obviously is imperative, but I think the the pain point that I talked about that people kind of got excited about was the reality of people addressing themselves as either, you know, self-funded searcher, things like that. I hate to say it, but it's it's kind of a bad word. Um, it was always kind of it always kind of made us wince on the banking side, on the lending side, even prior to the June 2025 SOP updates, were which were obviously coming at that model. I mean, there's no two ways about it. Um, but the fact of some folks are calling themselves XYZ capital and they have a website, and their website is, you know, targeting an aggressive roll-up strategy for a $1 billion exit. Okay, cool. Like you don't own a business. Like you have a LinkedIn account and and some stones coming coming at the world in that way, in my view. And it's interesting because I talked to a broker friend of mine, and they're like, dude, if I see somebody that comes to me with like some bogus hold code and they're not really in the arena yet, if they're not really in the trenches yet, I won't even talk to them. I don't care. I don't want to hear it. It's it's a negative thing. And there's a lot of good people that are well-meaning. Yes, I'm establishing this hold code because I do have aspirations, but the reality is we want people to be themselves. Um, authenticity is what's winning deals and negotiation right now. That's what I'm seeing. That's what I've always said. Jack, you've said the same thing for years at this point. Um, but now it's not just the well-informed brokers. Okay. To be clear, it's the residential realtor turned MA professional overnight. Uh folks, even those folks aren't talking to some of these guys. So, you know, you might be a great buyer. You might have a good story. Pro tip, be yourself. Don't act like you're bigger than you are. Don't LARP as a PE fund. Don't LARP as a few. That's why I put that up.
But don't LARP as a PE fund.
That's what Kevin Henderson got a kick at. Yeah. So don't LARP as a PE fund. Just be yourself. Be you and a group of folks. If you have a domain sort of great, but please, it's your own detriment to come across as you're in the middle of an aggressive roll-up strategy when you're really not in ownership quite yet.
Yeah, and I think that the data actually from Axial and some of these other biz by sell platforms who've released some of this data has actually shown that in most, I wouldn't say in most cases, but in a high percentage of cases, business owners aren't necessarily or business sellers aren't necessarily selling to private equity either. There's a certain subsect of business owners that actually statistically sell more to operators, either in-industry operators or people who can show that they have a history of operation and are just being themselves. And so I think that it's an interesting dichotomy, and I'm I'm curious to what you think about this. Is how I do think that building a brand around yourself, whether that be online, whether that be LinkedIn, whether that be an actual website, but building a brand of who you are and what industry you want to go into and actually being forthright about that is extremely valuable. Um, but what what do you see has been working for people who are searching to buy their first business? How should they be branding themselves, if not to try to LARP as PE, but like how should they be branding themselves and their their hold co to really showcase like the best version of themselves to brokers and um banks and sellers?
I I think that the most successful acquisition entrepreneurs that I work with are essentially having their deal team set up pre-LOI when they go to the sell side, when they go to the the listing broker or maybe an advisor, heck, even an off-market uh diamond if if you you know if you still have a W-2 and you're gonna keep chasing that unicorn. The reality is that these folks have identified, they've got a bank pre-qualification level. Okay, like obviously, I do a lot of that. I I would love to do it for any of the listeners, obviously, but anybody. Just get show that you are capable of taking down a deal. If you can reach out to a broker and say, hi, you know, my name is XYZ. Uh, I'm very interested in this business because it's aligned with what I'm looking for. What I'm looking for is skilled trades, home services, light manufacturing, whatever it might be, you know, it may be in that geography. Be specific. Show that like you're not just trying to find a business because you can't find a double block that pencils in the current rate environment, right? Because they're sniffing that stuff out. I I just had a call jack right before this one. That's why I was late, not just because that's a character of mine that I need to work on. Um, but you know, I I am self-aware. But honest to goodness, I told the guy the same thing. You know, they the seller wants to pass off the legacy, not to be cheesy, but PE is gonna come in there and sack Janice in the back office onto the street, right? That matters to sellers. And and and pro tip, Janice is the one that actually knows how the business is run, right? You know what I mean? That's it's to your own detriment to to kick in the break room door and say there's a new sheriff in town. If you can show them that you're gonna respect what they've built as far as legacy and take it from there and grow, you that's better. Sometimes I've seen them take less, like maybe a lesser offer, or maybe hold a seller note versus not holding a seller note because they say, you know what? This is the guy, this is the gal, this is who I want to continue the legacy. I don't care if it sounds cheesy. I did 90 million dollars last year, and guess what? That was a common theme.
Yeah, and so with that, I I definitely agree, those are some great strategies, but not but and uh what what I think that I've seen moving, kind of taking a step back, is right, you you you start this process along, you get your PFS, you get your pre-qualification letter through Allen, um, and you're good to go. So you're you're hitting the ground running. Uh, and the first thing that that a lot of sellers tend to do when they get the name of the buyer is they go straight to LinkedIn. They say, Who is this guy? I want to see uh this person, or they go to the website you provided. And so I think it's that branding opportunities is very important, uh, even pre that first discussion, pre-talking about structure. And so, what have you seen uh uh as successful from these individuals is like how how how do you view the setup prior to even these conversations that you're referring to?
I I better understand what you're what you're getting at now,
Jack. Forgive me. Yeah, so the people that are their branding specifically, again, it's authenticity in that you know, speak that language, right? Like, don't you don't need to be a hyper PE guy that you're turning people off because you're just as unapproachable, but you don't have the checkbook, right? Like, think about it, right? It's almost better to do, regardless of what you name the entity for for example, it can be XYZ, the Holko or whatever. But honestly, if you're like, you know, as a as someone who's managed budgets and people, I've always had an interest uh in the trades. Uh, you know, my grandfather taught me how to, you know, whatever it might be, make that human connection because once you humanize the request, the outcome is better. So I might sound kind of like generic advice, but I'm telling you, humanize it, be authentic. Your branding should be whatever brand you are, whoever you are. I'm I'm a guy from coal country in northeastern Pennsylvania. I grew up, my family owned bars, restaurants, car lots, not use cars, Jack. They're pre-owned vehicles. Thank you. But that's who I am, right? And it's it's not for everybody, but for the people it is, it's a great fit because it's real. And I would say the same thing is true for acquisition entrepreneurs, especially in this climate, man. It's still a seller's market, even though I feel that a lot of the bad buyers are dropping out, Jack. Right, you know, I'm not seeing as much internet guru hypnosis going on anymore. Um, but the reality is they've got the business. You want the business. Identify the rules of power here and be and just be cool. That that's what my advice is be cool.
Yeah, right. Be be be the cool guy. Um it it's it sounds silly, but it's it's actually extremely true. I I think that that I'd take it even a step further and I'd say, hey, yes, you need to be yourself, but also realize that if if okay, well let's let's equate this to a W-2. If you're going to offer a W, like you're gonna go out there, I'm gonna look for a job at Amazon as whatever. I'm going to change my LinkedIn, I'm gonna first change my resume, right? I'm gonna have my resume, I'm gonna rewrite it so that it matches what I'm the job I'm going out for. And you should be doing the same thing for your business across the board, is your your resume should be frontward facing towards, hey, I'm buying a business in this industry, right? So even if you're in finance, even if you're in marketing, whatever the case may be, you need to somehow draw a linear parallel line to whatever industry that you're trying to buy into from a resume standpoint. And then again, I keep hitting this branding one because I think it's so important. Is yes, the those initial conversations, you need to be a normal person, come at it like a normal person. Like, don't try to to LARPE, don't try to put on your blazer for the first time or your sports coat and go in there. I think that you you change your your LinkedIn profile around. So when they inevitably Google you, they see HVAC Jack uh has bought two HVAC companies before or has worked in facilities maintenance with this much in cooling under under uh construction. Uh and so like at least they can wrap their head around who you are in your history prior to those initial conversations because you need to have a right out the gate to the broker. You want the broker on your side so they know you're gonna close. They need to know that you're a good person, that you're being normal, that you're not some wacky, like wannabe. Um, but also like when they Google you for the first time, it doesn't hurt to have any kind of information out on the internet about your wins, about how you you do an awesome job in X, Y, or Z and how that relates to whatever you're trying to buy. Because we we are in the age of information, and the faster that they can come to the realization that you are a great buyer or a good potential buyer, the more serious the broker's gonna take you, the more serious the seller is gonna take you, and the faster and quicker you're gonna be able to move through some of these deals. They're not gonna be kicking you around as a secondary option.
Same goes for the bank, Jack. So, you know, obviously the one thing you can't do, and that's not just because uh my boss is a fan of your show. Uh, the reality is you cannot lie or misrepresent who you are. But also in the same breath, do not sell yourself short. I I recently had someone I was working with, Jack, and I'm going through their management summary, right? Because to pre-qualify a deal, um, to pre-qualify you as a buyer, I need two key pieces. Your personal financial statement that helps us frame how much, how big of a deal should you really be targeting. And if you're trying to get a little bit bigger than your britches, how do we structure that together? I can share some strategies that are SBA compliant. Um, you know, happy to share those with anyone that reaches out to me. We pre-qualify you based on that and your management summary, a resume. The gentleman that I had my follow-up call with, I said, listen, man, I see what you're doing, but I I think we're gonna have a hard time with the with the experience gap. Do you have a partner? Do you have someone else that we can loop in? Tell me more about this. Maybe you're not representing it right. He's like, Oh, well, Alan, I was directly responsible for a PL of a million dollars. I had 15 direct reports that I had to, and I'm like, dude, why didn't you tell me that? You know, like why why why am I finding out now? We could have skipped the Zoom, I could have given you your form. And and and and I don't like doing the Zooms anyway. I'm just kidding. But Jack, I'm telling you, your audience needs to know don't sell yourself short. Never misrepresent, because I'm telling you, if you get over on us and you get in there, it's not going to end well because I'm not talking about the fraud. What I'm talking about is a bankruptcy. That's what I'm talking about. I'm talking about being real with yourself about knowing what you can do and knowing what you can't do, or maybe you need some some support with. Keep it real with the bank and with the seller, but don't sell yourself short. Because the reality is if you've really done some stuff, get into the details, be specific. Let me know that you manage 15 people. You know what I mean?
Yeah. And and I think the other part is put it out there. Put it out there on the internet so that people know you're winning. Because if they don't know and you keep it all in your head and you don't have it out there and going, then nobody can, they don't know how to place you. They don't understand how serious you are. It just works against you. There's no, there's really no downside to putting your wins out there as you're trying to build up this ethos to buy businesses. Um, and I think it works with all your vendors and all the people you're working with throughout this entire process, right? You look better, you look better when you're working with the sellers, the brokers, the the bank, the, you know, across the board. So I mean that that's I I love the post though. I thought that that was a very strong one. That is a good reminder for a lot of people. It's one of some of the first advice I give people when I see that um you can go back and listen to an old episode with uh not you personally, but anybody listening can go back and listen to an old episode with uh Chris Barr. And I said, dude, why do you have this website? This is not a representation of you. Like be the guy that's buying in this region, like be that guy, even if you don't have an industry, like be the the the West Palm Beach buyer, the hungry kid, go to your you know local meetings, go to your your quantus club, like let people know you're buying. But what you don't want to do is be like, hey, I'm I'm private equity Joe from Oak Ridge Elm Capital, and and then like not being that's a real one.
I think I I think I pre-qualified a guy with the Oak Ridge Elm.
Oak Ridge Elm. They're always the same names too.
They're always like the worst, like generic if he if he closes with another bank. I I I don't deal with Oakridge Elm too well. Shout out to Oakridge Elm. I'm gonna I'm gonna get a cease and desist on this.
Like, hey, Oak Ridge Elm didn't appreciate you talking about their their freaking club.
And we'll have you know they're in the middle of a $10 billion roll-up strategy. Yeah.
Sweet Alan. Well, if people want to get a hold of you, if they want to pre-quall with you, if they have a business and they just want a second look at it, where can they reach you at?
So on anywhere on social, right, it's gonna be Alan Peterson S P A A L A N uh P-E-T-R-S-O-N-S-B-A. We have the uh Alan F I B. Is that still going, Jack?
That's going.
That's the preferred way because that lets me know that you found me through this channel. Okay. So anybody that comes to me through Jack Positions who owned and operated through this camp, let me know that. Make sure that you go through this website or if you find me elsewhere, let me know. Because you know, we're doing we're reducing the packaging fee uh and the due diligence deposit up front. So if we find something, there's no obligation for me to give you feedback. Love what I do and grateful for any opportunity. Give you advice uh to make sure that you don't okra gelm yourself out of a good deal.
Awesome, Alan. Appreciate it. If you like what you heard, like, subscribe, share, and reach out to Alan. Appreciate it, guys.
