How To Find Small Businesses For Sale

You may have decided to buy an existing business after it popped up on your radar. But more likely, you’ll have to look for a business that is for sale.

You can find businesses for sale via:

1. Hire a business broker.

A business broker is similar to a real estate agent. They know the ins and outs of which businesses are for sale (including which are a steal versus a money pit) and understand the nuances of specific industries. The broker will also help you throughout the negotiation process.

You may have to use a business broker with certain sellers who use intermediaries to protect their identity. Business owners sometimes keep their “for sale” activity secret to avoid provoking anxiety in suppliers, customers, and employees.

What to look for in a business broker.

Choosing the right business broker is crucial for a smooth transaction. Consider these key attributes:

• Experience and Industry Expertise: A broker with a solid track record in your business sector will better understand market conditions and potential pitfalls.
• Certifications and Professional Affiliations: Look for membership in the International Business Brokers Association (IBBA) or similar organizations to ensure professionalism.
• Reputation and Client Testimonials: Research reviews and ask for references to gauge client satisfaction and success stories.
• Network and Reach: A well-connected broker with extensive industry contacts can offer more opportunities and access to potential buyers or sellers.
• Fees and Contract Terms: Discuss upfront to ensure there are no hidden charges and both parties are clear on expectations and deliverables.

You’ll pay a fee to use a business broker, but it can be worth it to avoid surprises during the purchase process.

How to find a small business broker.

Places to find a small business broker include:

• Business broker associations
• Your professional network
• Ask other for-sale businesses

Business Broker Associations

Business brokers are like the rest of us. They often belong to professional organizations to stay current with industry trends, boost their visibility, and increase networking opportunities. Most business broker associations list their members on their websites.

Two well-known business brokers’ associations to review are:

Your network

Your professional network, including your attorney, accountant, or business peers, may be able to recommend a business broker. Don’t forget to check with your local SCORE chapter or small business development centers.

Ask for recommendations from for-sale businesses.

Do you know a business for sale that you aren’t targeting for purchase? Ask them if they are using a business broker that they’d recommend.

2. Ask your network.

This is the perfect time to tap into your professional network and small business associations. Often, they know what companies are on the market or are open to a conversation about selling.

Using your network to find businesses for sale offers several significant advantages. Firstly, there’s an inherent level of trust and credibility because you’re often dealing with established relationships. This trust can streamline negotiations and provide access to information that might not be publicly available.

Secondly, your network can offer deeper insights and firsthand experiences about potential businesses, helping you make a more informed decision.

Additionally, leveraging your network can lead to more discreet inquiries, which is crucial in preserving confidentiality during your search. Finally, using your network can save both time and resources by tapping into a pool of pre-vetted opportunities, compared to cold-search methods.

3. Check with your employer.

Depending on your employment situation, perhaps you could buy your current employer’s business. You don’t want to appear to be staging a takeover, so start the conversation by asking what their succession plan is. That could lead to deeper discussion, including your interest in purchasing the business.

4. Explore directory listings.

Internet searches and directory listings such as BizBuySell.com, Bizquest.com, and LoopNet.com are also great sources for finding businesses for sale. 

These sites allow you to filter your search by location, industry, and business size. They also provide detailed information on the business’s financials, such as revenue and cash flow. However, keep in mind that many of these directories charge a fee for listing businesses for sale, so not all companies may be represented.

5. Look for advertisements.

Finally, don’t overlook traditional methods like newspaper or online ads. Local publications often feature businesses for sale in their classifieds section.

A business owner planning a DIY sale may accept a lower purchase price since business broker fees will be eliminated. Finding the best small business to buy takes time but will pay off in dividends down the road. When you are ready to take the leap, remember that Lendio can walk you through the steps to secure a business acquisition loan.

_{Information provided on this blog is for educational purposes only, and is not intended to be business, legal, tax, or accounting advice. The views and opinions expressed in this blog are those of the authors and do not necessarily reflect the official policy or position of Lendio. While Lendio strives to keep its content up-to-date, it is only accurate as of the date posted. Offers or trends may expire, or may no longer be relevant.}