Everything you need to know before buying a business — from searching to closing, wherever you are in the world.
Before browsing listings, get clear on three things: your budget (including working capital post-sale), your preferred industry (ideally one you understand), and your target geography. A focused search saves weeks of time and protects you from distraction by listings that look attractive but don't fit your criteria. Use our search filters to narrow by location, price range, and industry from day one.
Every serious listing will show key financial metrics. Know what these mean before you inquire: Asking Price — the seller's opening number, always negotiable. SDE (Seller's Discretionary Earnings) — net profit plus the owner's salary and personal expenses run through the business. This is the most important number for small businesses. EBITDA — earnings before interest, taxes, depreciation, and amortization. Used for larger businesses. Multiple — the ratio of asking price to SDE. Restaurants typically sell at 1.5–3× SDE; service businesses at 2–3.5×; healthcare at 3–5×. Use our free valuation tool to cross-check any asking price.
When you find a business you like, send an inquiry through our secure messaging system. Many sellers require a Non-Disclosure Agreement (NDA) before sharing detailed financials. This is normal and protects the seller's employees, suppliers, and customers from learning the business is for sale prematurely. Sign NDAs willingly — a reluctance to sign signals to the seller that you're not a serious buyer. Your inquiry is private: Advertsale does not share your contact details with the seller until you choose to provide them.
Once you've expressed serious interest and received initial financials, due diligence begins. This is your right and responsibility as a buyer. Key areas to verify: (1) Financial records — 3 years of tax returns, P&L statements, and bank statements; (2) Lease agreement — length remaining, rent escalation clauses, and assignability; (3) Licenses and permits — transferable business licenses, health permits, liquor licenses; (4) Customer concentration — does 80% of revenue come from one client?; (5) Employee situation — key employees, their salaries, and retention risk post-sale. Hire a CPA familiar with local business transactions to review financials. It costs $1,500–$3,000 and can save you from a disastrous purchase.
Most established businesses are listed through licensed business brokers. As a buyer, a seller's broker represents the seller — not you. For purchases above $500,000, strongly consider hiring your own buyer's broker. A good buyer's broker will: identify off-market opportunities, help structure your offer, coordinate due diligence, and guide you through the closing process. Use our Broker Directory to find a licensed broker in your area.
Once due diligence satisfies you, submit a Letter of Intent (LOI). This is a non-binding document that outlines your proposed price, payment structure, transition period, and any contingencies (financing, final due diligence). Common deal structures include: All cash (strongest offer, usually negotiates best price), SBA 7(a) loan (most common for US-based businesses $250K–$5M, requires 10–15% down payment), and Seller financing (seller carries a note, usually 20–50% of purchase price at 5–8% interest over 3–7 years). A combination of bank financing plus seller financing is very common in business deals worldwide.
After the LOI is agreed, your attorney drafts the Asset Purchase Agreement (APA) or Stock Purchase Agreement. Depending on your jurisdiction, you may need to file bulk sale notices, obtain tax clearance certificates, or meet other local regulatory requirements — your attorney will guide you. Allocate the purchase price across asset classes (equipment, inventory, goodwill, non-compete) for tax purposes with your CPA's guidance. Budget 4–8 weeks from LOI to close. Congratulations — you're a business owner.