How to Spot a Distressed Seller

Not every business owner who wants to sell is in distress—but the signs are often there if you know where to look.

In this episode, Martin explores how experienced acquirers can identify a distressed seller before entering negotiations, from financial pressure and declining performance to owner fatigue, operational challenges, and personal circumstances.

You’ll learn what signals to look for, how to distinguish genuine distress from a normal business sale, and why understanding the seller’s situation can significantly change how you approach the deal.

Whether you're a first-time buyer or an experienced acquirer, knowing why a seller wants to exit can be just as important as understanding the numbers.

Listen in and learn how to spot the signals—and use them intelligently when evaluating your next acquisition.

What actually makes a business worth buying?

In this episode of the Acquisition Assist Podcast, Martin Godfrey Legido explores the key things buyers should look for when evaluating an established business — and why a profitable business isn't automatically a good acquisition.

Martin discusses how to assess the sector, existing management, reason for sale, financial performance, assets, valuation, financing opportunities and future potential of a business before making an offer.

He also shares practical insights into:

• How to identify whether a sector is growing or declining
• What the current owners can tell you about a business's potential
• Why the reason for sale matters
• Understanding EBITDA and business valuation
• What to look for on a company's balance sheet
• How assets and receivables can potentially support acquisition financing
• The importance of financial and commercial due diligence
• Vendor financing and structuring an acquisition
• Warning signs when a seller is promising "jam tomorrow"
• How to identify opportunities to improve a business after acquisition

Whether you're actively looking to buy a business or simply exploring the idea of business ownership, this episode offers practical perspectives on how experienced buyers assess an acquisition opportunity.

🎙️ Listen to the Acquisition Assist Podcast for more conversations and insights on buying and growing established businesses.

About Acquisition Assist

Acquisition Assist helps ambitious buyers navigate the business acquisition process and explore opportunities to become business owners.

🌐 Learn more: https://acquisitionassist.com

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