How to buy a business
Acquiring a business is one of the highest-leverage moves you can make — if you do it with discipline. Here's how to go from criteria to close.
- 1
Define your acquisition criteria
The best buyers are specific. Decide on industry, size (revenue and earnings), budget, location and the kind of owner role you want. Clear criteria let you say no quickly and focus on deals you can actually win and run.
- 2
Line up your financing early
Know how you'll pay before you fall in love with a deal. That might be cash, a bank or SBA-style loan, seller financing, investor capital, or a mix. Sellers take you far more seriously when your funding is credible and ready.
- 3
Source deals from more than one place
Great businesses aren't all advertised. Combine an on-market search (like the SellSide marketplace) with advisors and off-market outreach. Cast a wide net, then filter hard against your criteria.
- 4
Evaluate the business, not just the numbers
Look past the headline profit: customer concentration, recurring vs. one-off revenue, the team, the competitive moat, and — crucially — how dependent the business is on the current owner. Ask what breaks if the owner leaves on day one.
- 5
Value it and make an offer
Form your own view of what it's worth based on earnings, growth and risk, then put it in writing with a Letter of Intent (LOI). The LOI sets price, structure and exclusivity so both sides can commit to diligence in good faith.
- 6
Do thorough due diligence
Verify everything before you wire funds: financials and tax, legal and contracts, customers and suppliers, staff, and operations. This is where you confirm the story the seller told — or renegotiate if it doesn't hold up.
- 7
Structure the deal to manage risk
Price is one lever; structure is another. Earn-outs, seller notes, holdbacks and a transition period can bridge gaps and protect you if reality differs from the pitch. Good structure turns a risky deal into a fair one.
- 8
Close and win the first 100 days
Sign, fund, and transition deliberately. Keep key staff and customers close, don't change everything at once, and learn the business before you reinvent it. The deal is only a success once the business thrives under you.
Ready to find your acquisition?
Browse vetted opportunities, or book a call to talk through your criteria and how to evaluate the deals you're looking at.