Where to Find a Small Business to Buy

Online listing marketplaces

Large listing sites show thousands of businesses for sale and are the easiest place to start. Expect competition and listings that are priced optimistically.

Search by industry, region and price range. Save searches so you see new listings quickly. Treat the numbers as the seller's claims until verified. Note how long a listing has been up, because stale listings often signal a price that is too high or issues with the business.

Business-sale agents

Sale agents represent sellers, screen buyers and manage the process. They often hold listings that never appear online.

Contact a few sale agents who focus on your target industry and region. Tell them your budget and experience. Remember the agent is paid by the seller, so your own accountant and attorney should review everything. Our guide to finding a small business for sale covers more sources.

Your industry network

Suppliers, accountants, attorneys, landlords and trade associations hear about owners who want to retire or exit before anyone lists.

Tell people exactly what you want to buy. A supplier who sees many customers can point you to an owner who is tired or aging out. Trade associations and industry events also surface leads. Off-market deals often have less competition and fairer prices.

Direct outreach to owners

A short, respectful letter or call to owners of businesses you admire can start a conversation about a sale.

Use public business records and local directories to build a list. Keep the message honest and brief: who you are, what you do, and that you are interested in a conversation. Many owners have not thought about selling until someone asks. Expect many no replies and a few good talks.

What to check before you make an offer

Verify revenue, profit, taxes, contracts, customer concentration, lease terms and why the owner is selling.

• Three years of tax returns and monthly financials
• Bank statements that match reported revenue
• Customer concentration and key contracts
• Lease length and transfer terms
• Pending legal or tax issues
• Whether the business works without the owner

See business valuation methods and business acquisition basics.

How to approach a first conversation

The first call with a seller should be about listening, not negotiating.

Ask why they are selling, how the business runs day to day, who the key people are and what they would change. Request a signed confidentiality agreement before they share financials. Take notes and ask for a tour. Sellers sell to buyers they trust, so being honest about your budget and plans helps. Move to numbers only after you understand the operation.

Build a simple tracking sheet

Keep every lead in one spreadsheet so you can compare opportunities fairly.

Track the source, industry, asking price, revenue, profit, reason for selling, key risks and next step. Rank opportunities by fit with your skills and budget. After thirty leads, patterns emerge about fair pricing and good deals. A tracker also keeps you from chasing a shiny listing while a better one waits in your notes.

Paying for the purchase

Most buyers combine a down payment, an SBA loan or seller financing. ROI Funder does not place acquisition loans.

For the purchase itself, look at SBA programs; read how to buy a business with an SBA loan, or ask the seller about financing part of the price. After closing, you may need cash for inventory, payroll and improvements. ROI Funder can help the operating side with working capital once the business has the revenue history we consider. See our page on acquisition loans for the closest alternatives.