Big Story

Q&A: Walker Deibel on Buying Instead of Building and How Operators Create Value Through Acquisition

Walker Deibel’s core idea is simple. Buying a business gives you cash flow, customers, and systems from day one. You’re not starting from zero. You’re stepping into something that already works, which removes a lot of the early uncertainty that comes with building.

In his interviews and talks, he keeps coming back to the same point. Most buyers spend too much time looking for the perfect deal and not enough time considering whether they are actually ready to run it. The real constraint isn’t deal flow. It’s operator readiness. If you don’t know how you’ll manage the team, make decisions, and grow the business after closing, even a good deal can turn into a bad outcome.

He also points out that deal flow is not just about searching harder. The best opportunities are usually not widely marketed. They come from relationships built over time. That includes direct outreach, industry connections, brokers you stay in touch with, and being present in a specific niche. Buyers who rely solely on listings tend to compete on price, while those who build relationships often have more flexibility in structuring deals.

On diligence, his approach is straightforward. Focus on a small number of things that actually matter. Revenue quality, customer concentration, and how dependent the business is on a few people or processes. Going deeper into complexity doesn’t always reduce risk. In many cases, it just creates more noise. Clear answers on a few key drivers tend to be more useful than long reports.

A large share of businesses in this segment are owned by founders who are approaching retirement or simply ready to step away. These are not distressed companies. Many are stable, profitable, and have been run the same way for years. The opportunity comes from taking something that already works and improving it over time.

After the deal closes, his advice is to move more slowly. The first step is to understand how the business actually runs. Keep what is already working, retain key employees, and build trust before making changes. Trying to improve everything immediately often creates disruption and can damage the parts of the business that were working well.

Over time, changes can be introduced more deliberately. That could be pricing, processes, hiring, or growth initiatives. But those changes tend to work better once there is a clear baseline and a stable team in place. The focus early on is not transformation. It is continuity.

Across everything he says, one idea stands out. This is not just a financial exercise. Buying a business is the start of operating it. The buyers who treat it that way tend to make better decisions before the deal and create more value after it.

Governance Feed

1. Seller-friendly protections are appearing more often in middle-market deals as sellers push for greater certainty about what they actually take home. Instead of relying heavily on escrows, deals are being structured to limit how much risk sellers carry after closing. This is shifting negotiations. Liability, payment timing, and downside protection are now as important as headline valuation.

2. The SBA introduced a new loan structure for small manufacturers through its International Trade Loan program, with a 90% federal guarantee. It supports expansion, hiring, and production, and now includes more of the food supply chain. The program also makes it easier to use debt for acquisitions, with fee waivers in FY2026 and a new onshoring portal. For buyers in the lower-middle market, this improves access to financing compared with standard SBA structures.

3. Mid-market deal activity came in below expectations in Q1 2026, with 242 deals, down from 260 deals in Q1 2025. The issue isn’t demand. It’s that buyers and sellers can’t agree on the price. Sellers can’t confidently forecast costs or performance, and buyers don’t want to underwrite uncertainty. As a result, only the best-prepared businesses are actually making it through the process.

Thesis Principle

M&A activity is increasing in value but still selective in volume. There is capital in the market, but fewer deals are actually getting done. Buyers are being more selective. Sellers are holding on to price expectations. That gap is slowing things down. The deals that do move forward tend to have clear positioning, clean financials, and aligned expectations on both sides. At this stage of the market, success is about picking the right ones and executing well after closing.

Resources & Events

📅 Smart Business Dealmakers Conference (New York, NY - June 4, 2026)

A one-day middle-market M&A conference bringing together CEOs, investors, lenders, and deal advisors for focused discussions on transaction execution, capital raising, and business transitions. The event emphasizes practical insights across the deal lifecycle, with sessions led by experienced operators and advisors. For participants in lower-middle-market transactions, it provides a targeted environment for building relationships and exchanging deal-focused perspectives. Details →

📅 Manufacturing M&A Dealmakers Forum (St. Louis, Missouri - May 4, 2026)

A one-day forum focused on middle-market manufacturing transactions, bringing together CEOs, CFOs, and advisors to discuss valuation, deal flow, financing trends, and strategic growth options. The program centers on how companies approach acquisitions, partnerships, and exits in the current environment, with an emphasis on capital strategy and execution. For operators and investors active in lower-middle-market deals, it provides a setting for understanding how value is created and transacted in manufacturing businesses. Details →

📊 Report Spotlight: Middle Market M&A Valuations Index (Capstone Partners)

Valuations in the middle market have settled after the 2022 drop, with average EBITDA multiples now in the mid-9x range. The bigger shift isn’t the number itself, but how uneven the market has become. Strong, well-run businesses are still getting premium prices, while anything with messy financials or unclear growth is struggling to attract serious buyers. Private equity remains active, mostly by buying smaller companies and adding them to businesses they already own, but overall deal volume remains lower as exits are slower and buyers are more cautious. Financing has improved slightly, which is helping some deals get done, but pricing is still all over the place depending on quality. Read →

For the Commute

Cultural Fit Over EBITDA (M&A Science)

Nathan Rust explains how Salas O’Brien completed 30+ acquisitions while keeping leadership teams in place. His approach is simple. Screen early, and don’t waste time on poor fits. He uses a small set of questions instead of long checklists. He also lets sellers evaluate the buyer through reverse diligence, which builds trust and filters out bad matches. On integration, leadership visibility matters. The CEO shows up, meets teams, and reinforces continuity. The focus is on keeping the business stable and aligned.