Business For Sale & Franchise Search Engine  
My Account
Search Businesses For Sale


to refine your search results use advanced search  
Franchise Opportunities

Sell Your Business, Starting at $20.99 per month
Small Business Resources > What to Look for When Buying a Business

What to Look for When Buying a Business

When planning to buy an existing business, you will want to look for a type of business that matches your experience and skills. Not only are you buying a business, but you are buying a lifestyle and a means of making a living.

What type of business is right for me?
Obviously, you will want to do some research on different types of businesses available before you make the purchase to see if it will meet your needs and fit into your lifestyle. One of the most common reasons business owners fail is because they get involved in an industry they know absolutely nothing about.

How to find the right business for sale
Ok, now you have decided which industry you feel most comfortable in. Now it is time to find the perfect business. There are many businesses for sale across the US. Finding the right one can many times be very challenging. We have found the best way to search for a business is have the business come to you. offers a free Business Buyer Membership. This free membership allows you to set up certain criteria such as type of business, location, asking price and many other factors. You can choose to have emails sent to you daily with only businesses that meet your exact criteria.

After you have chosen a business
You will want to investigate the financial stability of the business, including the location and customer base. It is advisable to be well versed on how to value a prospective purchase so you know if you're paying a fair price. You will also want to seek the advice of professionals, such as business brokers and/or accountants. They can warn you of any possible pitfalls.

Asset purchase or stock purchase
The buyer should also consider whether or not the purchase is strictly an asset purchase or includes stock as well. If you purchase the stock of an incorporated business, you may be in for some hidden surprises such as any pending lawsuits, hidden claims for back wages, or back taxes owed. Also, if you purchase the stock, you may not be entitled to a tax deduction for depreciation on existing equipment.

Seller financing
Something that can be looked into is seller financing. If the seller will finance the purchase of the business with a fairly low down payment, 20% or less, this indicates a high level of confidence not only in the business itself but in your role as the buyer.

You could also consider linking the purchase price to the retention of the current customer base. If you are purchasing a service related business, many times you are heavily relying on the existing customer base. Some deals are made in which the purchase price can be dropped if a certain percentage of customers are not retained over a particular period of time.

If the purchase price is based on customer retention, it can be quite valuable to also have an agreement in which the seller is available for a certain time period during the transition of the business to the new owner. Not only is there an incentive for the seller to remain in the picture, but this also affords the opportunity for the buyer to be personally introduced to clients and vendors.

Due Diligence
This is just a basic overview of the business buying process. It is suggested you investigate every aspect of the business during your due diligence process. Due Diligence is probably the most critical stage in the buying process. Many prospective buyers incorrectly identify this period as strictly a financial review, but it goes far beyond that. Due Diligence encompasses a far greater project - that being the complete investigation and review of the business.

About the Author has become the fastest growing business for sale search engine, helping buyers and sellers of small businesses and franchises. has many resources to help you on your journey to start your own business, sell your existing business or open a franchise. has thousands of businesses for sale in the US and Canada.

*** You may use this article on your website as long as the "About The Author" box is in place with all links exactly as above and the article or any links in the article are not altered. ***

Related Resources
Buying a Business
10 Reasons to Buy a Franchise
12 Laws of the Business Buying and Selling Jungle - PART I
12 Laws of the Business Buying and Selling Jungle - PART II
Advantages & Disadvantages of Owning a Franchise
Advantages and Disadvantages of a Start-Up Business
An Overview of Today's Business Opportunity Market
Auto Franchises
Become a Franchise Consultant
Business Brokers
Business Brokers – How They Can Help You
Business Buying Tips
Business Lawyer
Businesses for Sale by Owner
Businesses under $10,000
Buy A Business Using This One Simple Skill
Buy A Business With No Money Down?
Buying a Business - How to Buy a Business
Buying a Business Steps
Buying a Business: Using An Outside Inventory Company
Buying A Franchise
Buying a Restaurant - What You Need To Know
Buying the Right Business
Coffee Franchises
Dispelling the Common Myths about SBA Financing
Do Home Based Businesses & Franchises Really Work?
Do What You Love or Love What You Do
Do You Need Bricks and Mortar Anymore?
Financing The Deal
Finding A Business To Buy Tips
Food Franchises
Forget The Asking Price of A Business For Sale
Franchise Alliance
Franchise Information
Franchise Lawyers
Franchise Reviews
Franchises - What To Consider
Free Small Business Magazines
Getting Into Business: Don't Start It! Buy It!!
House Cleaning Franchises
How Do I Obtain Capital To Invest In My Business Start Up
How Much Does a Franchise Cost
How To Buy A Business - Part 1
How To Buy A Business - Part 2
How To Buy A Business At A Great Price CD
How To Buy A Good Business At A Great Price
How to Make More of Your Franchise
How To Value A Business
Hurricanes Affect the Value of Florida Businesses
Little-Known Business-Funding Option Awaits Your Discovery
Low Cost Business Ideas
Negotiating The Price of a Business for Sale
Questions to Ask a Franchisor When Buying a Franchise
Reasons to Use a Franchise Consultant
Restaurant Start-Up Guide - Start Your Own Restaurant
Selling Your Technology Company - Why Earn Outs Make Sense Today
Small Business Loans for Small Business Owners
Starting a Small Business in Less than 24 Hours
Ten Common Mistakes Made by Franchise Buyers
The Advantages of Buying An Existing Business
The Advantages of Unsecured Business Loans when Buying a Business
The Complete Guide to Buying a Business
The Differences Between a Franchise & Business Opportunity
Things To Consider Before Buying A Business: Be Careful
Three Signs Of A Franchise Winner
To Franchise or not to Franchise
What is a Letter of Intent?
What is an E-2 Visa?
What is Cash Flow?
What is Due Diligence?
What is EBITDA?
What is FF&E? - Furniture Fixtures and Equipment
What Is My Business Worth? Learn How Small Businesses Are Priced
What is Seller's Discretionary Cash Flow?
What to Avoid When Starting a Vending Business
What to Investigate Before You Buy a Business
What to Look for When Buying a Business
What to Look for When Buying an Online Business
What to Think About Before Buying a Franchise
When To Start The Due Diligence Process?
Wholesale Distribution Start-Up Guide - Start your own Wholesale Distribution Business
Why Buy an Existing Business?
Why Buy an Existing Business?
Work From Home Scams
©2024 MH Sub I, LLC dba Internet Brands
Broker Membership | Terms Of Use | Financial Disclaimer | Privacy Policy | Cookie Policy | Resources | Franchise Opportunities | Website Traffic Ranking | Sitemap | Careers | Contact Us | Manage Preferences Your Privacy Choices