Most people buying businesses are looking for the obvious.

The obvious growth.

The obvious profit.

The obvious opportunity.

That's exactly why they miss the best deals.

Kyle Brown spent years in investment banking and private equity evaluating acquisitions before ever buying a business himself.

And what he learned was simple: The businesses that look the safest aren't always the best investments. And the businesses that look broken aren't always broken.

When Kyle came across an ecommerce business that was barely breaking even, most buyers would have walked away.

Declining performance.

Frustrated owners.

Uncertain future.

On paper, it looked risky.

But Kyle wasn't looking at the same things everyone else was.

In this episode, Jaryd sits down with Kyle to unpack how investment bankers evaluate opportunities, how private equity investors think about risk, and how to value a business when traditional formulas stop working.

They discuss why so many buyers become obsessed with multiples, how distressed businesses can create outsized returns, and the operational changes that helped turn a struggling acquisition back into a profitable company.

But perhaps the biggest lesson is this: Buying a business isn't about finding perfection. It's about seeing something everyone else has missed.

Most buyers never learn how to do that. Kyle did.

🎧 Hit play to discover what investment bankers know about buying businesses that regular buyers will never figure out exists.

 

Episode Highlights

03:36 - How a Kid From an 800-Person Farming-Town High School Broke Into Investment Banking and Private Equity

07:03 - The $1M-$3M EBITDA Businesses His Family Office Targeted — And Why HVAC Became Their Favorite Acquisition Category

08:29 - The 25-Year-Old Who Took Over a Newly Acquired Ecommerce Business Just 30 Days After the Seller Walked Away

12:12 - How an 8-Year-Old Relationship Led to an Off-Market Acquisition Opportunity Nobody Else Saw

16:09 - The Break-Even Business Dilemma: How He Valued a 7-Figure Revenue Company When EBITDA Was Essentially Zero

20:14 - Why a Business That Once Generated $500K+ in Earnings Could Suddenly Be Worth Just 1x SDE

26:00 - The Turnaround Strategy: How Adding Customer Service, Sales Processes, and Accountability Took the Business Back to Profitability

30:14 - Why He Refuses to Build a Fund, Raise Millions, or Chase a Big Exit Despite Having the Background to Do It

 

Key Takeaways

➥ The best acquisition opportunities rarely look perfect. Kyle bought a business that was essentially breaking even because he focused on what it could become, not just what it looked like on closing day.

➥ Investment bankers don't just analyze numbers - they analyze risk. Revenue, profit, and multiples matter, but understanding why a business is struggling is often far more valuable than the financial statements themselves.

➥ A declining business gets discounted twice. First through lower earnings, and then through a lower valuation multiple. That's why turnarounds can create outsized returns for buyers who know how to fix the underlying problems.

➥ Relationships create opportunities that search never will. Kyle wasn't actively looking to buy a business when the deal appeared. An eight-year relationship and a consulting conversation led to an off-market acquisition most buyers would never have seen.

➥ You cannot improve a business you don't understand. Before hiring people or changing processes, Kyle answered customer calls himself, learned the products, and got into the weeds of the operation. The best operators understand the front lines before they build systems.

➥ Most struggling businesses don't need a miracle. They need execution. Answering the phone, following up with customers, building a sales process, improving accountability, and fixing neglected marketing channels can have a bigger impact than any growth hack.

➥ Buying a business can feel like buying yourself a job at first. The goal isn't to avoid work on day one. The goal is to build systems, people, and processes that eventually give you the freedom to work on the business instead of being trapped inside it.

➥ Not every acquisition needs to lead to a fund, a roll-up, or a massive exit. Sometimes the smartest strategy is to buy a good business, improve it, enjoy the cash flow, and let future opportunities emerge naturally rather than forcing the next deal.

 

About Kyle Brown

Kyle Brown is a Michigan State graduate who spent 5+ years in investment banking and private equity in Chicago before making the leap to operator. He ran an eCommerce HVAC distribution portfolio company from 2017–2020, discovered his passion for the business, and went on to acquire and exit industrial and eCommerce distribution businesses. Today he's the CEO of 1877ForParts.com — a niche HVAC parts eCommerce distributor with over 1 million parts in stock, applying institutional deal discipline to real-world small business ownership.

 

Connect with Kyle Brown

➥ 1877ForParts: https://www.1877forparts.com/ 

➥ LinkedIn: https://www.linkedin.com/in/msukylebrown/ 

➥ X: https://x.com/MSUKyleBrown 

 

Resource Links

➥ Connect with Jaryd here - https://www.linkedin.com/in/jarydkrause

➥ FREE Download the Due Diligence Framework - https://buyingonlinebusinesses.com/freeresources/

➥ Buying Online Businesses Website - https://buyingonlinebusinesses.com

➥ Online Business Due Diligence Services -https://buyingonlinebusinesses.com/duediligence

 

Buy & Sell Online Businesses Here (Top Website Brokers We Use) 🔥

➥ Empire Flippers - https://bit.ly/3RtyMkE

➥ Flippa - https://bit.ly/3wGa8r5

➥ Motion Invest - https://bit.ly/3YmJAmO

➥ Investors Club - https://bit.ly/3ZpgioR

 

*This post may contain affiliate links, so we may earn a small commission when you make a purchase through links on our site/posts at no additional cost to you.

Most people buying businesses are looking for the obvious.
The obvious growth.
The obvious profit.
The obvious opportunity.
That's exactly why they miss the best deals.
Kyle Brown spent years in investment banking and private equity evaluating acquisitions before ever buying a business himself.
And what he learned was simple: The businesses that look the safest aren't always the best investments. And the businesses that look broken aren't always broken.
When Kyle came across an ecommerce business that was barely breaking even, most buyers would have walked away.
Declining performance.
Frustrated owners.
Uncertain future.
On paper, it looked risky.
But Kyle wasn't looking at the same things everyone else was.
In this episode, Jaryd sits down with Kyle to unpack how investment bankers evaluate opportunities, how private equity investors think about risk, and how to value a business when traditional formulas stop working.
They discuss why so many buyers become obsessed with multiples, how distressed businesses can create outsized returns, and the operational changes that helped turn a struggling acquisition back into a profitable company.
But perhaps the biggest lesson is this: Buying a business isn't about finding perfection. It's about seeing something everyone else has missed.
Most buyers never learn how to do that. Kyle did.
🎧 Hit play to discover what investment bankers know about buying businesses that regular buyers will never figure out exists.
&nbsp;
Episode Highlights
03:36 - How a Kid From an 800-Person Farming-Town High School Broke Into Investment Banking and Private Equity
07:03 - The $1M-$3M EBITDA Businesses His Family Office Targeted &mdash; And Why HVAC Became Their Favorite Acquisition Category
08:29 - The 25-Year-Old Who Took Over a Newly Acquired Ecommerce Business Just 30 Days After the Seller Walked Away
12:12 - How an 8-Year-Old Relationship Led to an Off-Market Acquisition Opportunity Nobody Else Saw
16:09 - The Break-Even Business Dilemma: How He Valued a 7-Figure Revenue Company When EBITDA Was Essentially Zero
20:14 - Why a Business That Once Generated $500K+ in Earnings Could Suddenly Be Worth Just 1x SDE
26:00 - The Turnaround Strategy: How Adding Customer Service, Sales Processes, and Accountability Took the Business Back to Profitability
30:14 - Why He Refuses to Build a Fund, Raise Millions, or Chase a Big Exit Despite Having the Background to Do It
&nbsp;
Key Takeaways
➥ The best acquisition opportunities rarely look perfect. Kyle bought a business that was essentially breaking even because he focused on what it could become, not just what it looked like on closing day.
➥ Investment bankers don't just analyze numbers - they analyze risk. Revenue, profit, and multiples matter, but understanding why a business is struggling is often far more valuable than the financial statements themselves.
➥ A declining business gets discounted twice. First through lower earnings, and then through a lower valuation multiple. That's why turnarounds can create outsized returns for buyers who know how to fix the underlying problems.
➥ Relationships create opportunities that search never will. Kyle wasn't actively looking to buy a business when the deal appeared. An eight-year relationship and a consulting conversation led to an off-market acquisition most buyers would never have seen.
➥ You cannot improve a business you don't understand. Before hiring people or changing processes, Kyle answered customer calls himself, learned the products, and got into the weeds of the operation. The best operators understand the front lines before they build systems.
➥ Most struggling businesses don't need a miracle. They need execution. Answering the phone, following up with customers, building a sales process, improving accountability, and fixing neglected marketing channels can have a bigger impact than any growth hack.
➥ Buying a business can feel like buying yourself a job at first. The goal isn't to avoid work on day one. The goal is to build systems, people, and processes that eventually give you the freedom to work on the business instead of being trapped inside it.
➥ Not every acquisition needs to lead to a fund, a roll-up, or a massive exit. Sometimes the smartest strategy is to buy a good business, improve it, enjoy the cash flow, and let future opportunities emerge naturally rather than forcing the next deal.
&nbsp;
About Kyle Brown
Kyle Brown is a Michigan State graduate who spent 5+ years in investment banking and private equity in Chicago before making the leap to operator. He ran an eCommerce HVAC distribution portfolio company from 2017&ndash;2020, discovered his passion for the business, and went on to acquire and exit industrial and eCommerce distribution businesses. Today he's the CEO of 1877ForParts.com &mdash; a niche HVAC parts eCommerce distributor with over 1 million parts in stock, applying institutional deal discipline to real-world small business ownership.
&nbsp;
Connect with Kyle Brown
➥ 1877ForParts: <a href="https://www.1877forparts.com/">https://www.1877forparts.com/</a>&nbsp;
➥ LinkedIn: <a href="https://www.linkedin.com/in/msukylebrown/">https://www.linkedin.com/in/msukylebrown/</a>&nbsp;
➥ X: <a href="https://x.com/MSUKyleBrown">https://x.com/MSUKyleBrown</a>&nbsp;
&nbsp;
Resource Links
➥ Connect with Jaryd here -<a href="https://www.linkedin.com/in/jarydkrause"> https://www.linkedin.com/in/jarydkrause</a>
➥ FREE Download the Due Diligence Framework - <a href="https://buyingonlinebusinesses.com/freeresources/">https://buyingonlinebusinesses.com/freeresources/ </a>➥ Buying Online Businesses Website -<a href="https://buyingonlinebusinesses.com/"> https://buyingonlinebusinesses.com</a>
➥ Online Business Due Diligence Services -<a href="https://buyingonlinebusinesses.com/ads-services/"> </a>https://buyingonlinebusinesses.com/duediligence
&nbsp;
Buy &amp; Sell Online Businesses Here (Top Website Brokers We Use) 🔥
➥ Empire Flippers -<a href="https://bit.ly/3RtyMkE"> https://bit.ly/3RtyMkE</a>
➥ Flippa -<a href="https://bit.ly/3wGa8r5"> https://bit.ly/3wGa8r5</a>
➥ Motion Invest -<a href="https://bit.ly/3YmJAmO"> https://bit.ly/3YmJAmO </a>➥ Investors Club -<a href="https://bit.ly/3ZpgioR"> https://bit.ly/3ZpgioR</a>
&nbsp;
*This post may contain affiliate links, so we may earn a small commission when you make a purchase through links on our site/posts at no additional cost to you.

Jaryd Krause quit his plumbing job in 2015 by acquiring online businesses and never looked back. Now one of the world's leading Online Business M&A advisors, he's helped thousands of people acquire profitable businesses, made his clients millions, and scaled companies from 6 to 8 figures.

The Buying Online Businesses Podcast cuts through the noise on acquisitions, M&A strategy, and building real wealth through buying already profitable online businesses. Whether you're looking to replace your income or build a portfolio that funds the life you actually want, this is your show!

Jaryd Krause quit his plumbing job in 2015 by acquiring online businesses and never looked back. Now one of the world's leading Online Business M&amp;A advisors, he's helped thousands of people acquire profitable businesses, made his clients millions, and scaled companies from 6 to 8 figures.
The Buying Online Businesses Podcast cuts through the noise on acquisitions, M&amp;A strategy, and building real wealth through buying already profitable online businesses. Whether you're looking to replace your income or build a portfolio that funds the life you actually want, this is your show!

Buying Online Businesses Podcast

Hosted by Jaryd Krause who went from plumber to creating an online business empire through buying websites for passive income. 

This podcast will unfold his secrets as you explore the highs, lows and light bulb moments of his personal journey in each episode. He will show you that no matter where you are in life an alternate lifestyle is more than possible. You will gain the knowledge you need to start buying online businesses yourself and live a fulfilling lifestyle.