Download - HOW TO BUY & SELL A BUSINESS...source: BizBuySell.com, Demographic Study on Small Business Visit us at . BizBuySell connects owners, buyers and brokers in the Internet’s largest

10. Finalize the DealPrepare for final due diligence. Investigate buyer capabilities. Stay focused on running your business until the deal is final.

9. Negotiate OffersNegotiate from a position of strength. Offer incentives, such as financial options, to motivate buyers. Consider price, terms and conditions - what you’ll accept and what you’ll reject.

8. Attract Qualified BuyersCreate a well written online ad to reach the largest number of buyers - even while keeping it confidential. Consider using a professional business broker.

7. Set an Asking PriceEstimate the value of your business. Use price multiples, comps or work with a professional appraiser or broker. Consider risk and other variables.

6. Grow Your Business & Prepare for Your ExitDevelop ways to add value to your business over time. Get your financials in order ahead of time.

5. Close the DealConduct final due diligence. Review and verify that all information is correct & accurate. Agree to final terms & conditions. Transfer ownership.

4. Get FinancingResearch your options. There are many ways to finance the purchase of a business. You may be surprised!

3. Make an OfferAn offer begins the negotiation process. Expect a counter offer, and the dance continues.

2. Find the Right BusinessSearch online listings and reach out to your network. Evaluate your options. Look at financials, value drivers and future earning potential.

1. Explore Your Best OptionsBefore you buy, assess your needs, identify your skills and strengths. Determine the type of business that would suit you best.

HOW TO BUY & SELL A BUSINESSBe Your Own Boss, Grow Big and Cash Out

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Number of Sold Businesses Remain Strong

2016 2017 2018 2019

9,74610,3129,919

7,842

source: BizBuySell.com, 2019 Insight Report

2016 2017 2018 2019

$200k $228k $249k $250k

Average Sale Price of Businesses Are Going Up


Car Wash $900,000

Home Health Care $375,000

Auto Repair & Service $295,000

Bars & Taverns $200,000

Convenience Stores $185,000

Restaurants $180,000

Hair Salons & Barbers $79,750

MEDIAN SALE PRICE BY INDUSTRY


Top States Where Businesses Are Bought & Sold 19% California • 16% Florida

8% New York • 10% Texas


NUMBER OF REPORTED SALES BY INDUSTRY

RETAIL

SERVICE

MANUFACTURING - 3.8%

INTERNET - 4.3%

CONSTRUCTION - 3.9%

WHOLESALE - 1.9%OTHER

46.6%38%

1.5%


Personal/family savingsBusiness loan bank/otherPersonal credit cardPersonal/family non-savingsPersonal/family home equityBusiness credit cardLoan/investment family/friendsGov. backed loan (SBA)Venture capital investmentLoan from govGrants

64.4%16.5%

9.1%8.7%6.3%4.9%4.5%1.8%

0.5%0.5%0.2%

Top Sources of Capital Used fora Startup or Initial Acquisition

Source: Kaufman Foundation, Access to Capital for Entrepreneurs, March 2019. Excludes responses that answered ‘don’t know’, ‘none needed’, or ‘other’.

65%

40-59 years old

78%

are male

48%

earn $100,000+

58%

college educated

Who is Buying and Selling Small Businesses

source: BizBuySell.com, Demographic Study on Small Business

Visit us at www.bizbuysell.com. BizBuySell connects owners, buyers and brokers in the Internet’s largest business for sale marketplace. Buy a business or sell your existing business. Research your options or prepare for your exit. Learn the entire process with our free step-by-step guides. © 2020 BizBuySell.The Internet’s Largest Business for sale Marketplace