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Once a target is identified, you must verify basic fit before moving to a formal offer.
Meet the owner to understand why they are selling (e.g., retirement, health issues) and see if the business truly matches the reported complexity.
Focus on a specific Industry (e.g., HVAC, plumbing, accounting), Size (revenue/profit targets), and Geography .
If the business passes initial screening, you must determine its worth and propose terms.
Find opportunities through online marketplaces (like BizBuySell or Flippa ), business brokers, or direct outreach to owners. 2. Evaluation and Initial Contact
Sellers will require a signed NDA before sharing sensitive financial or customer data. 3. Valuation and the Letter of Intent (LOI)
Buying an existing company is often viewed as a less risky alternative to starting one from scratch because it provides an established customer base, immediate cash flow, and operational infrastructure. The process is complex and typically spans , requiring a blend of financial analysis, legal negotiation, and operational planning. 1. Preparation and Search Criteria
Decide if you want to be a hands-on operator or a passive owner hiring a general manager.