You are in the market to purchase an existing business. The first question that comes to mind is, “where can I look for those existing businesses to purchase?” It is not common for a business to stake out a “For Sale” sign in front of their doors in the hopes of finding a potential buyer. One tactic to note is that you should never simply limit your searches to businesses that are listed currently for sale. If you find a business that seems palatable and looks like a good opportunity, consult with your attorney and make an offer. The worst thing that can happen is that you get a negative response that indicates that the owners are not willing to sell at this point. The good news is that if they are considering selling in the near future they may keep you in mind. The other alternative is to look for businesses that are actively seeking buyers. Trade associations for the industry are a good start for a search. If you are seeking to purchase a business in your local area, consider contacting the Chamber of Commerce to see if they can provide any assistance. Also, don’t forget to put the word out that you are looking to buy a business amongst your contacts in your network. Your network is a valuable asset that should not be overlooked in the search for a business to purchase. Let’s consider some other sources that provide help in finding an existing business to buy.
The Internet hosts numerous websites listing businesses for sale, and a simple Internet search will come up with many hits; there are more websites that host online classified advertisements selling businesses every day. You can chose to either do a general search for websites listing businesses for sale, or do an industry-specific search.
Newspapers: Many national and local newspapers carry advertisements for businesses and business premises for sale. Also consider placing an advertisement yourself stating clearly exactly what you are looking for. Check out your local library for press directories to get contact information for a variety of trade journals, national and local newspapers, and magazines. Most newspapers have a section for classified advertisements. The Wall Street Journal even has a specific section in their classifieds of businesses for sale.
Business brokers match buyers to sellers. This is a great way to find a business to purchase, although there is a fee involved because the broker does the legwork for you. A good business broker will screen businesses for sale to determine if there are any existing problems and also screens businesses to make sure that they actually exist! There are less than scrupulous people out there who are always willing to take advantage of an enthusiastic buyer. Business brokers also help to guide buyers through the selling and purchasing process, and it’s always good to have an extra head involved in the deal to get second opinions. Having a broker can help smooth over potential snags and rough spots during the transaction. The business broker’s fee will probably result in a higher sales price for the buyers, even if the seller is the person who is nominally paying the commission to the broker.
If a business looks like a promising lead, contact the owner or the broker, if the business is listed with a broker. Do your research. Find out the necessary general facts about the business and look for potential trouble spots. As you do your research you will be able to determine if what seemed like an initially attractive choice is worth the effort to make a purchase transaction.
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