NBN Book of the Day Richard S. Ruback and Royce Yudkoff, "HBR Guide to Buying a Small Business: Think Big, Buy Small, Own Your Own Company" (HBR Press, 2017)
15 snips
Nov 24, 2025 
Royce Yudkoff, a Harvard business professor, and Richard S. Ruback, a corporate finance expert, delve into the world of entrepreneurship through acquisition. They argue that buying a small business can be less risky than starting a new venture. The duo shares essential traits for success, like grit and curiosity, and the emotional challenges of searching for the right business. They also highlight key strategies for evaluating businesses, understanding financing options, and the importance of a patient approach post-acquisition. Plus, they discuss the benefits of pursuing acquisitions in emerging markets.
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Main Street Auto Roll-Up Example
- Logan Leslie bought independent auto shops and centralized administrative functions at Main Street Auto.
- He improved operations and created value while keeping skilled mechanics running shops locally.
Two Effective Search Strategies
- Searchers pursue opportunities either by developing industry theses or by flooding themselves with broker deal flow.
- Bathing in deal flow helps you see unusual niche businesses that don't fit a thesis but are valuable.
Use Brokers To Build Deal Flow
- Start conversations with small business brokers and use listings sites like BizBuySell to build steady deal flow.
- Use recurring exposure to deals to learn what a quality small company actually looks like.
