What should an acquisition mentor actually give you?

What should a deal review cover?

A deal review is the core of the job. It should end with a written verdict, not a conversation you have to remember. At minimum it should test:

• Earnings. Which add-backs are real, and what the business earns after paying someone to run it.
• Price. The multiple against market data. BizBuySell's all-sector average was 2.57x cash flow over 2021 to early 2026, with wide ranges by industry: from 2.04x for hair salons to 4.99x for car washes.
• Financing. Whether the deal passes the lender's test. As of October 2026, an SBA Initial Acquisition needs 1.25x coverage on historical cash flow, and projections cannot be used.
• Valuation cap. SBA deals require an independent business valuation, and total debt is capped at the appraised value. Any gap between price and valuation comes from your cash.
• Structure. Seller note terms, standby requirements, working capital and what SBA rules prohibit, such as seller earnouts.
• Risk. Owner dependence, customer concentration, lease terms and what happens if revenue falls.

What does judgment look like in practice?

Judgment is knowing which problem matters. A first-time buyer sees a long list of issues in a data room. Most are noise. A few decide the deal.

A good mentor tells you which ones, and tells you when to walk. That second part is harder to find. Anyone paid only when you close has a reason to keep you moving. You want someone who will say no to a deal you like.

Judgment also covers what is normal. Is it normal for a broker to withhold financials before an LOI? For a seller to resist a full-standby note? For diligence to take 30–60 days? A mentor who has done deals can tell you what is routine and what is a red flag.

What should the written plan include?

Advice you cannot reread is advice you lose. A written plan should cover:

• Criteria. Industry, size, geography and the deal terms you will and will not accept.
• Capital. How much equity you have, how much you need and where the rest comes from. My view is to raise capital before you find the first deal, because raising after an LOI puts you under time pressure.
• Structure. What the first business goes into. If you may buy more than one, decide whether a holding company sits above it before you close.
• The next 90 days. Specific actions with dates.

How should a mentor be paid?

The fee structure tells you whose interest the mentor serves.

• Success fees. Buy-side brokers charge flat fees or success fees of 2–5%. A success fee pays only if you close, which rewards closing.
• Equity. A mentor who takes equity shares your upside, but also gains from any deal that closes.
• Fixed fees. A fixed fee pays the same whether you buy, renegotiate or walk. That is the cleanest structure for a verdict.
• Referral payments. Ask whether the mentor is paid by any lender, broker or service provider they introduce.

For reference, at Meraki Dealmakers the Holding Company Playbook is a $10,000 fixed fee for about 30 days, four one-on-one sessions and a written playbook, with no equity and no success fees. Playbook clients can add Deal Reviews: $3,000 for three one-on-one sessions within 60 days, with a written verdict on each deal.

Also check the track record. Ask how many acquisitions the mentor has closed personally, not just advised on. I have closed 8 M&A transactions personally and advised on dozens more. Ask any mentor for the same split.

Worked example: a deal review in numbers

The deal is illustrative. The rules are as of October 2026. Confirm with your lender how it applies the valuation cap.

1. Seller's discretionary earnings: $700,000. Less a $120,000 salary for whoever runs the business: $580,000 of cash flow.
2. Asking price: $2,400,000, about 3.4x SDE. Add $150,000 of working capital, fees and closing costs: total project costs $2,550,000.
3. Equity injection at 10%: $255,000.
4. Independent valuation: $2,200,000. Total debt is capped at that figure.
5. Cash you need: $2,550,000 − $2,200,000 = $350,000, not the $255,000 the 10% rule alone suggests. That is $95,000 more.
6. Debt service on $2,200,000 at 10% (prime of 7% plus 3%, the September 2026 maximum) over 10 years, paid monthly: about $348,900 a year.
7. Coverage: $580,000 ÷ $348,900 = 1.66x. Passes the 1.25x test.
8. Price is under $3 million, so a lender-commissioned QoE is not required. A QoE-lite, which a survey priced at under $10,000, is still worth considering.

Written verdict: the business can carry the debt, but the price is $200,000 above the valuation. Renegotiate toward $2,200,000, or proceed only if you have the extra $95,000 and accept paying above appraisal.

Where these numbers come from: SBA rules come from SOP 50 10 8.1 as summarized by Beancount and Cantrell Firm. Multiples come from Beancount's BizBuySell analysis. The rate cap comes from NerdWallet; check current prime. Buy-side broker fees come from BizBuySell. Diligence timing comes from BizBuySell, and QoE-lite pricing from the Big Deal Small Business deal cost survey. SOP 50 10 8.1 applies to loans that receive an SBA loan number on or after October 1, 2026 (SBA Information Notice 5000-880695).

Related questions

What is the difference between a mentor and an adviser?

The words overlap. What matters is the deliverable: reviews of your deals, written verdicts and a written plan. Someone who offers general encouragement without those is a sounding board, which has value but is a different thing.

Should my mentor also be my broker or lender?

It is better if not. A broker or lender is paid when a deal closes. Your mentor's job includes telling you not to close. Keep the roles separate where you can.

How often should I meet with a mentor?

Around decisions, not on a fixed calendar. The most useful sessions are before an LOI, during diligence and before closing. A plan with dates gives the sessions a purpose.

What comes next

To compare what a mentor, an adviser, a course and a mastermind each cost and deliver, read What does an acquisition adviser cost compared with a course or mastermind?

Related articles

• Are business-buying courses and masterminds worth the money?
• What does an acquisition adviser cost compared with a course or mastermind?
• When should you raise capital: before or after you find a deal?
• How do you build a holding company for acquisitions?

Meraki Dealmakers is a service of Meraki Partners, LLC, an advisory firm. It is not a broker-dealer, investment adviser, business broker, law firm or accounting firm. This article is general information, not legal, tax or investment advice.