How Do I Buy A Small Business ◆ 〈EXTENDED〉

The following steps outline the typical acquisition path from initial planning to closing the deal. 1. Preparation and Self-Assessment

Before looking at listings, define your "buy-box" or target criteria. how do i buy a small business

Set non-negotiable limits for industry type, business size (revenue/profit), and geography. The following steps outline the typical acquisition path

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) business size (revenue/profit)

You will need specialized help to avoid costly mistakes. This team typically includes a business attorney , a CPA or accountant , and potentially a business broker . 2. Sourcing and Initial Screening