Looking to buy a business but don’t know how to find good businesses for sale?
If yes, you'll find this guide helpful. The world of acquisitions can be overwhelming, but it doesn’t have to be.
Whether you're eyeing a thriving company or a hidden gem, finding the right business, knowing where to look and what to avoid can make the difference between frustrations and successful acquisition.
With many online marketplaces, brokers, and networking at your fingertips, finding a business to buy shouldn’t be that hard.
But which of these methods works best?
This guide dives into the most effective ways to discover businesses for sale, how to evaluate listings, and key considerations for a successful purchase.
Guide To Finding Businesses For Sale:
To find businesses for sale, start by exploring online marketplaces like BizBuySell, contacting business brokers, or networking within industry-specific circles.
You can also search through classified ads, attend industry events, or reach out directly to business owners.
Using multiple sources ensures a wider variety of opportunities.
Online Marketplaces for Business Listings
One of the most popular avenues for finding businesses listed for sale is the online marketplaces.
There are many online platforms out there that make it easy for you to search for businesses that are for sale.
Top platforms for buying a business include:
BizBuySell: This is no doubt one of the largest marketplaces for all types of business listing. It features over 50,000 listings for businesses across various industries.
BizQuest: This platform specializes in business sales and franchise opportunities, with advanced search filters to help you easily discover the specific opportunities you’re looking for.
Flippa: This marketplace is ideal for you if you’re interested in buying online businesses, such as e-commerce sites, blogs, and SaaS platforms.
Using online marketplaces to find businesses on sale presents you with several benefits.
For instance, you get exposed to a variety of listings to choose from. This allows you to filter businesses by your preferences like location, industry, and budget.
These sellers also provide you with detailed business overviews, including financial performance and growth potential.
Not to forget, many of these platforms offer you access to brokers, financing partners, and industry experts to assist you with the acquisition process.
Using Business Brokers To Find Businesses for Sale
A business broker serves as a middleman between you and the seller, helping you identify opportunities and navigate the complex purchase process.
Some key roles of a broker include:
Valuing businesses to ensure you're paying a fair price.
Negotiating deals on your behalf.
Providing market insights that may not be readily available to the public.
That said, you need to take your time to ensure you find the most reliable business acquisition brokers.
Key factors to consider include:
Check credentials: Look for certified brokers who are members of reputable associations like the IBBA (International Business Brokers Association) or M&A Source.
Ask for references: Speak to past clients to understand the broker's success rate and approach.
Fee structure: Brokers don’t work for free, so you should also try to understand their fees well in advance. Brokers typically ask for 5-10% of the sale price.
Related: Should You Use A Business Broker To Buy A Business?
Use Your Networking and Industry Connections
Many businesses never officially go up for sale—they are sold quietly through personal or professional connections.
Here’s how to tap into this "hidden market":
Attend industry events: Conferences and trade shows can offer you direct access to owners looking to sell.
Join local chambers of commerce: Business owners often announce sales within their local business communities before listing them publicly.
Reach out directly: If there's a specific business you're interested in, you may consider contacting the owner directly. You might be surprised that a polite inquiry could lead to a private negotiation.
Check Classified Ads and Local Listings
Before the dominance of online marketplaces, classified ads in newspapers or online portals were a popular way to sell and buy businesses.
They remain valuable today. And they can be especially helpful if you’re looking for local or smaller businesses.
Craigslist: Here, you can find regional listings that can lead to lower-priced deals, though thorough vetting is essential.
Local newspapers: Many small businesses tend to advertise their sales here, especially in smaller communities.
Use Industry-Specific Channels
Some industries have specialized marketplaces or publications that cater specifically to their market.
This makes them a great option if you already know what industry you want to get into.
Some top options to consider include:
We Sell Restaurants: This one focuses on the restaurant industry, featuring restaurant sales and franchising opportunities.
LoopNet: Though LoopNet is primarily a real estate platform, it also lists properties that include businesses such as hotels or retail stores for sale.
Franchise Direct: As the word suggests, this platform specializes in franchising opportunities, making it a great resource if you’re interested in purchasing an established brand.
By focusing on niche sources, you can easily find more targeted opportunities that lie within your specific area of interest.
Contact Business Owners Directly
Sometimes the best way to find businesses on sale is to directly contact the business owners. But how exactly do you do this?
It’s easier than you think…
If you have a particular business or industry in mind, simply reach out to the owners directly to ask if they’re interested in selling.
Start by identifying businesses that meet your criteria and contact the owners to express your interest in purchasing.
While this approach may take time, it can yield results if the owner is considering selling but has yet to list publicly.
Partner with Private Equity Groups (PEGs)
Yes, the private equity groups (PEGs) often seek out businesses for acquisition, particularly in growing industries.
They usually target established businesses with strong financials, but smaller businesses may also find opportunities for partnerships or acquisitions.
One advantage of using PEGs to find businesses on sale is that they bring extensive resources and expertise in scaling businesses.
However, they tend to seek a controlling interest, which may not appeal to all buyers.
Working with PEGs can present you with greater opportunities for joint ventures or co-investments in a business acquisition.
Considerations for Buying a Business
When looking for a business for sale, there are many factors to put into consideration to ensure you get the best deal for your money.
Specifically, you should pay close attention to valuation and due diligence. Regardless of how you find a business for sale.
To perform proper due diligence on a business, you’ll need to follow these quick steps:
Analyze the financials: Examine the company’s profit margins, debts, and growth potential.
Review the contracts: Ensure that any existing contracts or leases are easily transferable.
Check the liabilities: Identify any outstanding legal or tax issues that could prove problematic to your business post-acquisition.
Related: Pros and Cons of Acquisition: Is It Worth Your Investment?
How to Find Businesses for Sale by Owner
Finding businesses for sale directly from the owner can lead to better deals, as there's often no middleman or broker involved.
Here are some of the best ways to find these opportunities:
Classified Ads: Websites like Craigslist or Facebook Marketplace often list businesses for sale directly by the owner. While these sites may primarily focus on personal goods, they can also offer you great local business listings.
Online marketplaces: Platforms like BizBuySell and LoopNet are popular for businesses listed by owners. These websites offer filtering tools that allow you to search specifically for "for sale by owner" listings.
Networking: Attend local business meetups, industry conferences, or networking events. As we mentioned earlier, many business owners prefer selling within their trusted networks before going public with the sale.
Direct outreach: If you have a specific industry or location in mind, you can directly approach the business owners with an offer. This proactive approach can help you uncover potential sales that aren't publicly listed.
How to Find a Local Business for Sale
If you’re wondering, "How do I find businesses for sale near me" this is your part. When you're looking for a local business to buy, proximity is key.
Here's how to find businesses in your area:
Local chambers of commerce: Many local businesses list for sale directly through their Chamber of Commerce. This is a great resource for finding trusted opportunities in your community.
Business brokers: Working with a broker who specializes in your local market can help you find businesses that match your criteria. They often have access to listings that aren't public and can provide valuable market insights.
Local newspapers: Even in the digital age, some business owners still prefer traditional methods of selling. Check local newspapers and trade publications for businesses that might be flying under the radar.
Community boards and online groups: Community hubs like Nextdoor or local Facebook groups are good places to spot businesses for sale. Many local business owners prefer to keep their sales discreet by listing them within these communities.
Online marketplaces for business listings: Online business marketplaces are an effective and easy-to-access method for finding businesses for sale. Platforms such as BizQuest, Flippa, and BusinessesForSale.com allow you to browse listings by industry, location, and price.
Networking opportunities: Many of the best acquisition opportunities come from personal connections. Attending industry-specific events or joining local business networks can provide leads on businesses for sale. Word of mouth remains a powerful tool in business acquisitions, especially if you seek off-market opportunities.
Final Word
Finding the best businesses on sale can be complex for you, but by leveraging both online platforms, local networks, and other avenues we have discussed here, you can easily uncover great opportunities. Whether you’re searching for a small business for sale by owner or exploring options in your local area, patience, and research are key.
Finding the right business to buy doesn't have to be overwhelming. If you're serious about acquiring a business, we can help you simplify the entire process and ensure you're getting the best deal possible - eventually helping you scale your acquisition and exit it for a 3-4x multiple.
Simply book a free consultation with our team of experts today, and let us guide you through this journey!
