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Thinking of Buying a Business?
Buying a business involves careful evaluation across multiple dimensions including financial analysis, industry research, competitive assessment, operational review, legal compliance verification, and strategic planning. Our Advisors guide buyers through the entire acquisition process to ensure a successful closing and smooth transition. This includes identifying suitable opportunities, conducting thorough due diligence, structuring favorable deal terms, securing financing, and managing the transition period. We work in a professional and confidential manner to protect your interests while helping you find the right business opportunity that aligns with your goals and capabilities.
Our Advisors understand that buying a business can be a complex, intimidating and time-consuming process, especially for first-time buyers. We are committed to making this process a smooth, fair and successful experience. Contact one of our Advisors near you from the list of business brokerage and M&A offices for a complimentary consultation.
Is it time to buy? Purchasing a business is a major decision that can accelerate your path to business ownership! Rather than starting from scratch, buying an existing business gives you immediate access to established revenue streams, loyal customers, proven systems, and an experienced team. If you have decided that now is the right time to buy, you want the very best professional guidance you can get. This is when working with a professional business broker can make the difference between making a costly mistake and acquiring the right business at the best price and terms!
Following are some of the most common topics and questions frequently brought up by buyers. If you have any questions that we have not covered, please don't hesitate to contact us.
If you've gone this far, then buying a business has aroused enough curiosity that you are taking the first step. You don't have to make a commitment at this point; you are just getting informed about what is necessary to successfully buy a business. This section should answer a lot of your questions and help you through the maze of the process itself.
The first question almost every buyer asks is: "How much does it cost to buy a business?" While this is certainly important, we're going to address some fundamental questions first. The real starting point is: "Why do you want to buy a business?" Are you looking for financial independence? Do you want to be your own boss? Are you seeking to leverage your industry expertise? Understanding your true motivation will guide you toward the right opportunity and help you stay committed when challenges arise.
The second critical question is: "Do you have the financial capacity and relevant experience?" Serious buyers can demonstrate they have the resources to complete the purchase and the skills to operate the business successfully. This doesn't mean you need to be an expert in every aspect, but you should have realistic expectations about your capabilities and be willing to learn. A yes answer to these questions means you are a qualified buyer who sellers will take seriously.
Okay, let's assume you have decided to take the first steps toward buying a business. Before you start making offers, there are some important things you need to prepare. Being organized and professional from the start will help you gain access to better opportunities and be taken seriously by sellers and brokers.
Here's a checklist of what you should prepare:
Financial documentation showing proof of funds and creditworthiness Professional background summary highlighting relevant experience Investment criteria clearly defining what you're looking for Industry preferences and geographic requirements Desired business size (revenue, employees, assets) Available capital and financing needs Timeline and urgency level Business plan outlining your vision for growth and operations List of advisors including attorney, accountant, and financial advisor Pre-qualification for financing from SBA lenders or banksUnderstanding what sellers are looking for in a buyer will help you position yourself as the ideal candidate. Here are the key things that sellers and their advisors evaluate when qualifying potential buyers:
Adequate cash reserves or liquid assets for down payment Strong credit history and manageable debt levels Access to financing sources (SBA loans, bank loans, investor capital) Ability to cover working capital needs post-acquisition Clearly articulating your strategic vision for the business Demonstrating thorough research into the industry and market Responding promptly to requests and maintaining professionalism Having realistic timelines and defined next steps Industry knowledge and technical skills Management and leadership experience Willingness to learn and undergo training Plans for retaining key employees and maintaining relationshipsDue diligence is the comprehensive investigation you'll conduct before finalizing the purchase. This critical process typically takes one to three months and protects you from costly mistakes.
Key Areas to Investigate:
Review 3–5 years of financial statements, tax returns, and cash flow records Verify revenue trends, profit margins, and growth projections Identify outstanding debts, liabilities, and contingent obligations Analyze customer concentration and revenue stability Review all contracts with customers, suppliers, and employees Verify licenses, permits, and regulatory compliance Check for pending litigation or legal disputes Examine intellectual property rights and protections Assess business processes, systems, and technology infrastructure Evaluate supply chain relationships and dependencies Review employee structure, key personnel, and turnover rates Examine physical assets, equipment condition, and maintenance records Analyze competitive landscape and market position Assess customer satisfaction and loyalty Identify growth opportunities and potential risks Evaluate industry trends and future outlookUnderstanding your financing options is crucial for structuring a successful deal. Here are the most common methods buyers use to fund business acquisitions:
SBA 7(a) loans: Up to $5 million for business acquisitions, working capital, equipment, and real estate Benefits: Lower down payments (10–20%), longer repayment terms (up to 25 years), competitive interest rates (10–13.5%) Requirements: Good credit, business valuation, proven management capability Timeline: 1–3 months from application to funding Conventional business acquisition financing Typically requires larger down payments (20–30%) Shorter terms but potentially lower rates for well-qualified buyers Seller acts as the lender for a portion of the purchase price Typical structure: 50–70% down payment, remainder paid over 3–7 years with interest Benefits: Easier qualification, flexible terms, demonstrates seller confidence Considerations: Seller retains interest in business performance, may require personal guarantees Portion of purchase price contingent on future performance Common structure: Base payment at closing plus additional payments tied to revenue or EBITDA targets When used: Valuation gaps, high-growth businesses, owner-dependent operations Typical range: 10–25% of purchase price over 1–3 years Equity rollovers: Seller retains partial ownership for alignment Revenue-based payments: Ongoing percentage of sales up to a cap Milestone payments: Tied to specific operational achievements Hybrid combinations: Multiple financing methods in one dealA smooth transition is critical for the long-term success of your acquisition. Most transition periods last 30–90 days, during which the seller trains you on operations, introduces you to key relationships, and ensures business continuity.
Pre-closing planning: Map out transition timeline and responsibilities Knowledge transfer: Document processes, systems, and institutional knowledge Employee communication: Introduce yourself, share your vision, address concerns Customer and vendor outreach: Maintain relationships and ensure confidence Operational handoff: Learn day-to-day management while maintaining stability Leadership establishment: Set goals, build team alignment, implement your visionLet’s discuss your goals and challenges—no pressure, just clear, honest guidance toward the best direction.
