Published On January 8, 2025

7 Steps to Buying a Business

Let Us Guide You Towards Your Goal

7 Steps to Buying a Business
(Golden Dayz - Shutterstock)

We’ve combed through our library of articles and created this guide to the steps of buying a business. Of course, not every purchase transaction will follow each of these steps to the letter.  But this guide should give you an overview of the purchase process and get you started on the path to realizing your entrepreneurial dreams.

Step 1: Decide what kind of business to buy

General Guides

How to Find the Right Business to Buy

Discover what you should evaluate when selecting a business that is right for you. Learn some great tips for conducting your business search.

6 Reasons to Buy an Existing Business

Read why buying an existing business may be a better path to entrepreneurial success. Learn key factors to consider when you evaluate an existing business purchase.

How To Do an Acquisition Search

Hear an industry pro's process for conducting a successful business acquisition search. Learn how to conduct a targeted acquisition search which meets your needs and motivations.

Acquiring Remote Work and Hybrid Model Companies

Discover why remote and hybrid work companies make excellent acquisition targets. Identify the specific types of businesses well suited to these models and learn key considerations for buyers.

How ESG Planning Shapes M&A Decisions for Sustainable Growth

Explore how companies are weighing environmental, social and governance (ESG) factors in their M&A decision making. Learn opportunities for integrating ESG factors into your dealmaking.

Where and How to Buy Distressed Assets

Learn where and how to buy distressed assets. Understand the potential risks and challenges before investing.

How To Improve Any Business—When You’re Not an Industry Expert

Receive valuable insights from an FP&A expert. Learn how to conduct market research, form an investment thesis, develop a value-creation plan, and goal-set in an unfamiliar industry.

Franchise Guides

Should You Buy a Franchise?

Learn the origins of franchises. Understand how franchises are operated, are regulated and their pros and cons.

Understanding the Franchise Purchase Process

Take a walk through the franchise purchase process. Learn the key questions to ask yourself, other franchisees and the franchisor before committing to a franchise purchase.

Industry Specific Guides

Tips for Buying an eCommerce Business

Learn valuable tips for selecting a profitable and rewarding e-commerce business to purchase. Gain insights into an industry that continues to grow year after year.

Tips for Buying a Gas Station

Read 10 tips to consider when looking at gas stations for sale. Invest in your financial future and avoid costly mistakes by learning what to look for and what to avoid when purchasing a gas station.

Tips for Buying a Laundromat

Learn why laundromats can be a smart business purchase. Understand what to look for when considering buying a laundromat, and how to set up your business for continued success.

Tips for Buying a Liquor Store

Read 10 tips to consider when looking for an existing liquor store to purchase. Explore an industry which can provide a nice financial cushion, if you are a savvy business buyer.

Tips for Buying a Restaurant

Read key tips for evaluating the purchase of an existing restaurant. Learn how a good understanding and inspection of the operation up-front may be the secret sauce for your success.

Tips for Buying a Senior Care Business

Understand the booming senior care market and the various types of senior care businesses. Learn how to evaluate a potential senior care purchase.

Tips for Buying a Vending Machine Business

Read nine great tips to consider before buying a vending machine business. Recognize the red flags to be aware of and get help making a smart business purchase.

Step 2: Assemble your team

Understanding the Roles of Various Transaction Advisors

Learn the roles played by various transaction advisors such as business brokers, M&A advisors, investment bankers and more. Consider which advisors are appropriate for the sale of your business.

Understanding Search Funds

Learn about search funds, investment vehicles formed to support aspiring entrepreneurs. Understand the origin and lifecycle of a search fund, as well as tips for navigating the search fund journey.

What Are the Best Online Escrow Services?

Learn what an online escrow service can do for you and what to look for when selecting one. Discover six of the best online escrow services to help protect your transaction.

Step 3: Evaluate the asking price

How to Evaluate Small Business Financials

Financial statements tell the story of a business's health and longevity. Learn how to evaluate these documents and unlock the secrets of your target acquisition.

8 Factors That Can Impact Business Valuation

Learn 8 factors which can impact how your business is valued. Understand why valuation matters and what to do if you don't like your business valuation.

What To Ask Before You Engage a Business Appraiser

Understand when you may need to hire a business appraiser. Learn the right questions to ask to ensure you select an appraiser who can deliver an objective and meaningful valuation.

Valuation Considerations Unique to Construction Businesses

Discover the unique aspects of valuing a business in the construction sector. Understand how these considerations can help you craft a valuation strategy that provides clarity and confidence.

Decoding the Acquisition Puzzle

Explore the different methodologies of financial modeling in the context of acquisitions. Understand how financial modeling can act as a bridge between strategic vision and financial reality.

Step 4: Consider your financing options

How to Finance a Business Purchase

Learn the many avenues available for funding the purchase of an existing business. Discover which avenues will work for your business acquisition.

A Guide to SBA Loans

Learn all about SBA loans, including where to find them and the different types available. Find out if your business might qualify for an SBA Loan.

The Pros and Cons of Private Loan Financing

Learn about private loan financing as an alternative source of funding. Consider the advantages and risks associated with this form of non-traditional funding.

Small Business Grants for Entrepreneurs

Learn the benefits and drawbacks of small business grants. Use this valuable resource to begin your search for free grant funding.

Small Business Grants for EU Companies

Discover what you'll need and where to find small business grants. Learn tips for making your EU small business grant application stand out.

How Seller Financing Works for Business Acquisitions

Learn the pros and cons of seller financing for both buyers and sellers of businesses. Consider how seller financing can unlock opportunities for business buyers and increase value for sellers.

5 Best Crowdfunding Platforms for Small Businesses

Understand what crowdfunding is and the various forms of crowdfunding can take. Gain tips for launching a strong campaign and help selecting the right crowdfunding platform for your business.

401(k) Loans for Startup Capital

Explore the unconventional, but potentially effective use of a 401(k) loan to kickstart your entrepreneurial endeavors. Weigh the risks and rewards of 401(k) loans, and explore alternative options.

ROBS Financing for Businesses

Learn about ROBS (Rollover as Business Startups) financing. Weigh the pros, cons and risks involved in using retirement funds as a means of business capitalization.

A Complete Guide to Venture Debt Financing

Learn what is meant by the term "venture debt." Consider common uses for venture debt and how to evaluate whether this type of financing is right for your business.

Should You Raise Capital by Leveraging Real Estate, Securities, and Luxury Assets?

Explore this method of alternative business financing. Understand the distinctions, advantages and risks of raising capital using secured loans.

How To Raise Money in a Recession

Understand how down markets often birth new entrepreneurs. Learn eight ways to raise the capital you need to realize your entrepreneurial dream.

Understanding Credit Scores and Their Role for Entrepreneurs

Learn how credit scores work and the impact of business and personal credit scores on your company's goals. Gain insights for building a strong credit profile that supports your business success.

Financing Challenges for First-time Business Buyers

Understand the financing obstacles faced by first-time business buyers. Discover solutions to overcome financing challenges and turn your entrepreneurial dreams into reality.

Step 5: Prepare and deliver an offer

Understanding Letters of Intent

Understand what a letter of intent (LOI) is, when it is used, and what provisions are normally included. Discover red flags sellers should watch for and what to expect after the LOI is signed.

What Is a Non-Disclosure Agreement (NDA)?

Learn all about NDAs: what they are, when they are required, and what they cover. Consider the pros and cons of signing an NDA.

What Is Included In The Sale Of A Business – Q & A

Learn what's typically included in the sale of a business. Both buyers and sellers can use this valuable information to navigate the purchase and sale process.

Questions That Buyers Ask When Purchasing A Business

Learn the questions many prospective business buyers will ask. Preparing your answers in advance can help you successfully sell your business.

Tax Smart Strategies for Business Acquisitions

Explore critical tax considerations that every business acquirer should understand. Learn how these considerations can impact both immediate tax consequences and long-term financial outcomes.

Step 6: Conduct due diligence and finalize purchase documents

What Is Due Diligence?

Learn what due diligence is, and how and when to effectively conduct due diligence when you're buying a business. You'll find an extensive due diligence checklist to start your investigation.

The Best Online Tools for Due Diligence

Learn why you should consider using due diligence software. Explore the pros and cons of some of the best online due diligence products on the market.

How to Evaluate Small Business Financials

Financial statements tell the story of a business's health and longevity. Learn how to evaluate these documents and unlock the secrets of your target acquisition.

How To Evaluate Employees Before and After Buying a Business

Learn pre-sale and post-sale considerations when evaluating the existing workforce of your target acquisition. Consider your options when the results of your evaluations are less than positive.

Outside The Box Items You Can Add To A Business Purchase Agreement

Learn some unique provisions you may want to add to a business purchase agreement. These provisions can prove a useful part of a your business exit strategy.

How to Negotiate a Commercial Real Estate Lease

Learn strategies for inheriting and renegotiating a commercial lease. Secure a lease agreement that aligns with your business goals and sets the stage for your continued success.

The Questions Keeping Business Buyers Up at Night

Examine some of the top worries business buyers face during then purchase process. Learn how to manage each of those worries and set your acquisition up for success.

Step 7: Close the transaction and implement a post acquisition plan

The 100-Day M&A Metamorphosis

Learn to navigate your acquisition through the crucial first 100 days after closing. Discover strategies to implement effective communications, structures and systems during this critical time period.

Setting Achievable Goals To Grow Your Business

Learn how to set SMART goals to realize your vision. Understand how to convert goals into measurable financial targets, and discover key points to stay motivated on your quest for business success.

Common Mistakes When Buying A Business

Explore business buyers' common mistakes: personal, financial, operational and legal. Gain insights critical to avoiding these mistakes and making your business purchases successful.

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