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 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

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

This is a non-binding document outlining your proposed price, deal structure (cash vs. debt), and the timeline for due diligence. 4. Due Diligence Before looking at listings, define your "buy-box" or

If the business looks promising, you must determine its worth.

The following steps outline the typical acquisition path from initial planning to closing the deal. 1. Preparation and Self-Assessment Look for "red flags" like owner dependency (the

Set non-negotiable limits for industry type, business size (revenue/profit), and geography.