Buying a business, plainly explained.
What you can afford, how to find good companies that aren't for sale, and how to approach the people who built them.
How long does it take to buy a business? Step by step
The stages from first conversation to closing, what each one waits on, and what slows deals down, so you can plan your time and your cash.
Licenses and permits when you buy a business in Florida
Which licenses belong to a person and which to the company, how Florida contractor qualifiers work, and how to make sure the business can keep operating.
Your first call with a business owner: what to ask and say
The first conversation is about trust, not price. What to ask, what to share about yourself, what to save for later, and how to end the call well.
What kind of business should you buy? Choosing an industry
Your experience, licenses and qualifiers, recurring revenue, physical demands and seasonality. How to narrow down which industries to search.
What is a small business worth? How buyers set a price
Small companies are priced from owner earnings. How the math works, what moves the number up or down, and how a lender's valuation checks it.
How to keep customers after you buy a business
How to announce the sale (with a sample letter), use the seller's introductions, keep service and prices steady and look after your biggest accounts.
Earnouts, holdbacks and transition agreements, explained
Three ways a buyer and seller share the risk of what happens after closing. What each is, when each is fair, and the SBA's limits on them.
Customer concentration and other risks that change the price
Big customers, owner dependence, key staff, worn-out equipment, falling sales and one-person licenses. How to spot each and what it does to the price.
How to follow up with a business owner without being a pest
Many owners don't answer a first letter. When to follow up, what to say the second time, when to stop, and how to keep track of it all.
Signs a company is established and still owner-run
How to read public records for the signals that matter, from years in business and steady filings to long-time officers and owner-held licenses.
Seller financing explained: when the owner helps you buy
Why business owners agree to be paid over time, the usual shape of a seller note, how it changes your cash and how SBA lenders treat it, with an example.
How to keep employees after you buy a business
How to tell the team, meet key people early, keep pay and benefits steady, and answer honestly what employees fear about a new owner.
Your deal team for buying a business, and when to call each
A lender, an accountant and an attorney who know small business purchases. What each one does, when to bring them in, and how to find good ones.
Owner add-backs explained: what's fair and what's a red flag
How a company's profit becomes owner earnings, which add-backs hold up, which are wishful thinking, and how SBA lenders treat them.
How to approach a business owner about buying their company
Letter, email, call or visit? Why a mailed letter usually goes first, when to email or call, and how to walk in without overstepping.
What public records tell you about a Florida business
Sunbiz filings, state licenses, county tax rolls and PPP loan data each show part of a company's story. What each one reveals, and what it can't.
Where the down payment for a business purchase comes from
Savings, gifts, home equity, retirement funds, partners and the seller. What an SBA lender accepts as your cash, and the real risks of each source.
Your first 90 days after buying a business
Listen first, change little and watch the cash every week. A practical plan for your first three months as the new owner of an established company.
What goes in a letter of intent to buy a business
A letter of intent sets out price, structure and timeline before the lawyers draft the contract. What to include, what's binding, and what isn't.
What financial documents to ask for when buying a business
The tax returns, statements, bank records and reports to request from a seller after the confidentiality agreement, and why the tax returns matter most.
How to write a letter to buy a business, with an example
A first letter to an owner who isn't selling: what to put in, what to leave out, the mistakes that get letters thrown away, and an example to adapt.
Buying a business vs starting one: an honest comparison
Buying gets you customers, staff and cash flow on day one, at a higher price. How the trade-offs compare, and who should start from scratch instead.
SBA loans for buying a business, in plain English
How an SBA 7(a) loan works when you buy an established company, from the 10% down rule and 10-year term to the personal guarantee and what lenders check.
How to buy a business that isn't for sale
Most good small companies never appear on a listing site. Here's how to find them, and how to write to an owner who has never thought about selling.
How much business can you afford? The math a lender will do
Your cash and the salary you need set the size of company you can buy. Here's how to work it out the way a bank will.
Hurricanes, insurance and buying a business in Florida
How to check a Florida company's flood zone, wind and flood coverage, business interruption insurance and storm history before you set a price.
Raising prices after you buy a business
When a new owner can raise prices, how to test an increase, how to tell customers, and what to avoid in your first months.
Quality of earnings reports: when you need one
What a quality of earnings review is, who does it, what drives the cost, and when it's worth paying for on a small business purchase.
How to tell whether a business runs without its owner
Signs that a small company depends on its owner for sales, relationships, licenses or know-how, and how to plan a purchase around it.
Non-compete agreements when you buy a business
Why buyers ask the seller not to compete, what's usually reasonable in activity, area and time, and why an attorney should draft it.
Key employees: who the business really depends on
How to find the people a small company can't run without, when and how to meet them during a purchase, and how to keep them after closing.
Recurring revenue: maintenance agreements, contracts and routes
Why repeat revenue makes a company worth more, how to check that it's real, how to measure renewals, and what can make it disappear after a sale.
When the owner's price is too high
Why owners' asking prices often run high, how to explain your numbers without offending them, and the deal structures that can close a gap.
The purchase agreement: the main parts in plain English
What's in the contract you sign to buy a small business: what you're buying, price and payment, the seller's promises, indemnification and closing conditions.
Contracts that may not transfer when you buy a business
Customer contracts, supplier and franchise agreements, software licenses: why some need the other side's consent, and how to check early.
Building trust with a business owner over months
Owners decide to sell slowly. How to stay in touch, keep small promises, share your plans honestly and earn a real conversation.
The commercial lease: what to check before you buy
Time left, renewal options, landlord consent, rent increases and personal guarantees. How to read a company's lease before you commit to buying it.
Equipment and vehicles: checking what you're buying
How to list, inspect and value a company's equipment and vehicles before you buy: age, condition, maintenance records, liens and replacement costs.
Talking to lenders before you find a business
Why to meet lenders before you have a deal: learn what you could borrow, what they want from you, and which ones know business purchases.
Meeting an owner in person: the first visit
How to prepare for a first visit to an owner's business, what to watch and ask while you're there, what to leave alone, and how to follow up.
How to make an offer an owner takes seriously
A serious offer shows how you'll pay for it, explains your number, spells out the terms and timing, and respects what the owner cares about.
Working capital: what stays in the business at closing
Cash, money customers owe, inventory and unpaid bills on closing day. How a working capital target protects you, with a worked example.
Personal guarantees and collateral when you borrow to buy
What a personal guarantee means, why lenders ask for one, when your home can become collateral, and what to ask your lender and an attorney.
Family businesses with no one to take over
When an owner's children don't want the business, an outside buyer can be the best answer. How to approach these owners with care.
Proof of cash: checking revenue against bank deposits
How to match a company's reported revenue to its bank deposits month by month, what the gaps usually mean, and how to handle cash-heavy businesses.
Price versus terms: why a deal's structure matters
Two offers at the same price can be worth very different amounts. How cash at closing, seller notes, earnouts, timing and transition change a deal.
Tying a company's tax returns to its books
Why a small company's tax returns and its own financial statements rarely match, how to reconcile them, and what a gap that won't close tells you.
Looking for a business to buy while you still have a job
How to search for a business to buy part-time: finding the hours, keeping it private at work, staying in good shape for a lender, and when to resign.
What owners worry about when they sell
Employees, customers, legacy, confidentiality, getting paid and staying involved: what weighs on owners, and how to answer each honestly.
Reading a balance sheet when you buy a small business
Assets, liabilities and equity in plain words, and what a small company's balance sheet tells you about its cash, its debts and how it's run.
Owner-operator or manager-run: which business fits you
Some small companies need their owner every day; others run on managers. How each one changes the price, the risk and your week.
Choosing where to buy a business
Where you live, how far you'll drive, the local economy, workers and competition. How to pick the area for your search before you pick a company.
Reading a profit and loss statement for the first time
A line-by-line walk through a small company's profit and loss statement: what each part means, and what to check before you trust the bottom line.
Why owners sell: retirement, health and the other reasons
The common reasons owners of established companies decide to sell, and how each one shapes what they want from a buyer.
Are you ready to own a business? Questions to answer first
An honest look at the money, time, temperament and risk that owning a small business asks of you, before you start looking.