Who Not How: The Power of Leveraging Expertise in Business Acquisitions
Entrepreneurs are visionaries, problem-solvers, and go-getters. We often pride ourselves on our ability to tackle challenges head-on, but there’s a hidden trap in this mindset: the belief that we need to do everything ourselves. This is where Dan Sullivan’s Who Not How becomes transformative. It’s not about figuring out how to solve every problem—it’s about finding the who that can.
This principle is especially critical in the context of business acquisitions, where emotional attachment and a DIY mentality can blind us to potential red flags. Let me share a real-world example that underscores why finding the right experts is essential.
How We Avoided a Costly Mistake
Recently, while under contract to purchase a business, we made a deliberate decision to engage third-party experts at every stage of due diligence. As entrepreneurs, we were excited about the business’s potential, but excitement can be dangerous—it can cloud judgment and lead to costly oversights.
Here’s how the Who Not How mindset worked in practice:
- Financial Analysis:
Instead of relying solely on our own analysis, we hired a forensic accountant to comb through the financials. Their detailed review revealed discrepancies in revenue reporting that we hadn’t noticed—issues that could have significantly impacted the business’s valuation. - Operational Assessment:
We brought in an operations consultant who specializes in the industry. They uncovered inefficiencies in the supply chain that weren’t immediately apparent during our initial review. While these issues were fixable, they weren’t accounted for in the seller’s projections, and addressing them would require time and investment. - Legal Review:
A specialized attorney reviewed the contracts, uncovering a non-compete clause with loopholes that could have allowed the seller to open a competing business nearby. This clause was renegotiated, protecting our long-term interests.
The Results
By bringing in these unbiased experts—our “whos”—we were able to uncover critical issues we might have overlooked in our enthusiasm. These findings didn’t necessarily kill the deal, but they allowed us to renegotiate terms, account for hidden risks, and move forward with eyes wide open.
Why This Matters
Entrepreneurs are inherently invested in their ideas and deals, but emotional attachment can lead to tunnel vision. Third-party experts bring objectivity, specialized knowledge, and a fresh perspective. They don’t share your excitement for the deal—which is precisely why you need them.
Who Not How isn’t just a productivity hack; it’s a mindset that can save you from costly mistakes. The next time you’re faced with a significant decision, especially one as impactful as a business acquisition, pause and ask yourself: “Who can help me make the best decision here?” Chances are, the right who will make all the difference.
Call to Action:
Have you leveraged third-party expertise in your business acquisitions or major decisions? Share your experience in the comments below, or connect with us to learn more about how to build a team of “whos” that can help you make smarter, more informed decisions.
“Why Successful Entrepreneurs Don’t Go It Alone: The Secret to Smarter Deals”