How Do I Buy A Small Business -

Once you know what you want, begin searching for opportunities.

Analyze the Confidential Information Memorandum (CIM) , which is the seller's sales pitch. Look for "red flags" like owner dependency (the business can't run without the current owner) or vague financials. 3. Valuation and the Letter of Intent (LOI) how do i buy a small business

Before looking at listings, define your "buy-box" or target criteria. Once you know what you want, begin searching

To see detailed financial data, you must sign a Non-Disclosure Agreement (NDA) . Once you know what you want

Small businesses are commonly valued at 2x to 4x their Seller’s Discretionary Earnings (SDE) or EBITDA.