Buying an established business can be a faster, safer path to ownership than starting from scratch. You get customers, staff, equipment and cash flow on day one. But the buyers who succeed are the ones who prepare before they fall in love with a listing.
Here are the first five steps we walk every buyer through.
1. Know what you want, and what you will not do
Write down the industries that fit your skills, how many hours you want to work, how far you will drive, and how much income you need. Be honest about deal breakers. Nights and weekends? Managing a large crew? The right business fits your life, not just your budget.
2. Get your finances in order
Most buyers use an SBA 7(a) loan. Under the SBA’s current rules, plan on bringing at least 10% of the purchase price in cash for a full purchase. A seller note can cover up to half of that if the seller agrees to “full standby,” meaning no payments while the SBA loan is outstanding. Pull your credit report, gather two years of personal tax returns, and list your liquid assets. Talking to an SBA lender early tells you what you can realistically buy.
3. Sign the confidentiality agreement and ask good questions
To protect owners and employees, brokers share details only after you sign a nondisclosure agreement. Once you do, focus on:
- Three years of tax returns and the cash flow they support
- Why the owner is selling
- How much of the business depends on the owner personally
- The lease, key employees and largest customers
4. Make a smart offer
An offer is more than a price. Terms matter just as much: how much is paid at closing, any seller note, how long the seller will train you, and what conditions must be met (financing, lease transfer, licenses). A clear, well structured letter of intent shows the seller you are serious and makes the bank’s job easier.
5. Do your due diligence and plan your first 90 days
After your offer is accepted, verify everything: financials, equipment, contracts, permits and the lease. Bring in your own attorney and CPA. Meanwhile, plan your transition. Meet the staff with the seller, learn the key customer relationships, and keep the business running exactly as it was before you start changing things.
How we help buyers
Every BizExit listing starts with cash flow rebuilt from the seller’s filed tax returns, so you can trust the numbers you are reviewing. We screen listings for SBA readiness, explain financing options in plain English, and keep the process moving to the closing table.
Browse our current businesses for sale, or tell us what you are looking for and we will keep an eye out for you, including opportunities that never reach the open market.
Call Arlene at (423) 534-9890 or send us a message. We reply within one business day.