Buying Guide

Buying a business is the fastest route to owning cash flow, a team and a customer base — if you buy the right one, at the right price, on the right terms. Here is the process end to end.

In shortBuying a business is the fastest route to owning cash flow, a team and a customer base — if you buy the right one, at the right price, on the right terms. Here is the process end to end.

1. Define your acquisition criteria

Write down the industry, location, size (revenue and earnings) and your intended role. A focused buyer is taken more seriously by sellers and lenders than one browsing everything.

2. Search verified listings

Browse businesses for sale by industry and state. On ExitToBuy the financials are checked before listing, so you evaluate real numbers. Sign the NDA, request the details, and shortlist.

3. Value the business

Small businesses are usually priced on a multiple of earnings — SDE for owner-operated businesses, EBITDA for larger ones. Normalize the financials, compare against real transaction multiples, and separate the operating business from any real estate.

4. Letter of intent, diligence, and financing

An LOI frames price, structure and conditions. Diligence verifies what you are buying. Financing — often an SBA 7(a) loan plus a seller note and your equity — should run in parallel, not after.

5. Structure and close

Decide between an asset and a share/stock purchase (they carry very different tax and liability consequences), finalize agreements, and close through licensed escrow. A defined transition period protects the value you paid for.

Frequently Asked Questions

How long does it take to buy a business?

From accepted offer to close is commonly three to six months, driven mostly by diligence and financing. Verified listings and pre-qualified financing can compress that.

How much money do I need to buy a business?

With SBA 7(a) financing, buyer injections are often around 10% of the purchase price, though the figure depends on the deal, the lender, and whether the seller carries a note.

Value a business like this →Finance this acquisition →Run diligence →