How To Buy A Small Business -

Once you sign a , you enter a "due diligence" period (typically 60-90 days) to verify the seller's claims. You should request:

: Browse listings on sites like BizBuySell or Flippa. how to buy a small business

: If the owner is the only one who knows how to run daily operations, you are buying a "job," not a business. Look for documented processes and a strong second-in-command. Recommended Reading Buying a Business: 7 Documents to Request | CO Once you sign a , you enter a

Before making an offer, you must determine what the business is actually worth. Look for documented processes and a strong second-in-command

Build a "deal pipeline" from multiple sources simultaneously:

: For small businesses, the most common method is using a multiple of Seller’s Discretionary Earnings (SDE) —typically 2x to 4x annual profit. SDE is the net profit plus owner salary and personal perks.

: This is the most common way to fund a purchase. Banks can lend up to $5 million with as little as 10% down .