How to Find a Business to Buy

Finding a business to buy is often described as an entrepreneurial dream, but searching for the perfect match can be overwhelming. The search process is not as straightforward as most people think, and statistics show that only 10% of buyers acquire a business (Source: Small Business Trends).

The lack of a focused and strategic search approach is a big reason for this low success rate. Passive searches, incomplete deal evaluations, and competition can slow down even the most determined buyer.

Approximately 70% of buyers believe they will eventually secure a business at a fair price, yet financing hurdles, economic conditions, and other challenges often derail these efforts (Source: Business Sale Report).

Additionally, businesses tend to remain on the market for an average of 164 days, so speed and strategy are critical to closing deals successfully.

But don't be discouraged!

With the right approach, you can improve your chances of success. By leveraging a combination of traditional methods, innovative tools like Village Wellth’s Free Marketplace, and creative strategies, this guide will walk you through the most effective ways to discover the perfect business that meets your goals.

A Focused Search Strategy Matters

It's not just about finding any business—it's about finding the right business.

Having a multi-channel strategy that incorporates online marketplaces, brokers, cold calling, and AI-driven tools will give you a comprehensive view of the market.

Below, we dive into the most successful methods for business acquisition, using real-world examples and insights.

Opportunities to Find a Business

1. Online Marketplaces

Online marketplaces are the most popular starting point for buyers. Websites like Village Wellth, BizBuySell, BusinessesForSale, buyandsellabusiness.com, and BizQuest allow buyers to browse thousands of listings across industries and locations, making them an excellent first stop for many.

Real-Life Example: With 15 years of experience in landscaping, Mike used Village Wellth to search for opportunities. He filtered listings by location, financial performance, and industry until he found a small landscaping business. After reviewing the financials and negotiating through the platform, Mike successfully purchased the company—all from the convenience of his home.

Pros:

Broad Access: Finding a business to buy through online marketplaces offers access to thousands of companies across multiple industries
Free to Browse: Most online marketplaces are free, with premium memberships offering deeper insights and tools

Cons:

High Competition: Listings on these platforms often attract multiple buyers, so competition can drive up the final price
Incomplete Financials: Many listings lack complete financial information, which requires additional due diligence

Likelihood of Success:

Moderate to High: Online marketplaces are ideal for first-time buyers, but you’ll need to act fast to secure the best deals.

Build Your Free Buyer Profile on the Village Wellth Marketplace and Get Sellers to Reach Out to You!

2. Brokers

Business brokers act as intermediaries, connecting buyers with sellers and offering advice.

Real-Life Example: Sarah, an experienced business owner, wanted to expand her manufacturing company. A broker specializing in her industry introduced her to an off-market business owned by a family looking to retire. With the broker’s negotiation expertise, Sarah was able to secure the deal quickly and avoid competing buyers.

Pros:

Tailored Service: Brokers personalize the search, ensuring that you only view businesses that fit your criteria
Off-Market Listings: Brokers often have access to businesses that aren’t publicly listed

Cons:

High Fees: Brokers typically charge a 10-15% commission, which adds significantly to the cost
Potential Conflicts: Brokers work for both buyers and sellers, so their interests may not always align with yours

Likelihood of Success:

High for Larger Deals, Moderate for Smaller Deals: Brokers are helpful for large transactions, where their expertise can justify the fees.

Is it your first time buying a business? Get the advisory support you need to find the right company that meets your needs.

3. Commercial Real Estate Agents

When finding a business to buy that involves significant real estate, such as hotels or restaurants, working with a commercial real estate agent can be advantageous. These agents help evaluate the property’s value as well as its business potential.

Real-Life Example: David wanted to buy a chain of motels in Ontario. A commercial real estate agent helped him find off-market properties and businesses, which led to a profitable acquisition of multiple locations.

Pros:

Real Estate Expertise: Agents provide deep insights into the local property market, making them invaluable for location-based businesses
Holistic View: They can help you evaluate both the business and the property

Cons:

Limited Business Knowledge: While experts in real estate, agents may not fully understand the operational side of the business

Likelihood of Success:

Moderate: This approach works best for property-heavy businesses, where location is a critical factor.

4. Bankers

Banks, especially those that specialize in small business loans, are essential partners when it comes to structuring acquisition financing. Some bankers even have networks of business owners looking to sell, making them a valuable connection.

Real-Life Example: Emily wanted to acquire a trucking company but needed financing. Her bank not only provided her with loan options but also connected her with an owner within their network who was ready to sell.

Pros:

Access to Financing: Banks can give you early insights into how much capital you can leverage, helping you focus your search
Professional Networks: Some banks have existing relationships with sellers

Cons:

Limited Listings: Banks typically don’t have direct listings like brokers or online marketplaces

Likelihood of Success:

Low: Banks are vital for financing but won’t always help you find the deal itself.

5. Lawyers and Accountants

Lawyers and accountants with M&A experience provide invaluable due diligence support and may even introduce you to clients looking to sell their businesses.

Real-Life Example: Steve’s accountant introduced him to a client who was ready to sell a small manufacturing business. This direct referral saved Steve considerable time and gave him an inside track to a profitable deal.

Pros:

Professional Expertise: Lawyers and accountants are essential in ensuring that the transaction is financially and legally sound
Client Networks: These professionals can connect you with sellers through their network

Cons:

Limited Networks: Although connected, the network opportunities from lawyers and accountants aren’t vast

Likelihood of Success:

Low to Moderate: Lawyers and accountants are critical during due diligence but are not always a primary source for finding deals.

6. Cold Calling

Cold calling is an unconventional yet effective way to find unlisted businesses. By reaching out directly to business owners, you can access opportunities that haven’t hit the market.

Real-Life Example: Jake wanted to buy an auto repair shop but couldn’t find any listings. Instead, he created a list of shops in his area and started cold calling. After several conversations, he found an owner ready to sell, leading to a deal with no competition.

Pros:

Access to Off-Market Deals: Cold calling can reveal hidden opportunities
Low Cost: You avoid broker fees, giving you more room to negotiate

Cons:

Time-Consuming: Cold calling requires persistence and a lot of time

Likelihood of Success:

Moderate to High: It’s a highly effective approach, especially for smaller businesses that haven’t been listed publicly.

7. Mailing a Memorable Gift Before Cold Calling

Want to make an even bigger impact before cold calling?

Try sending a memorable gift, like a personalized item or a box of chocolates. This thoughtful touch can make business owners more receptive when you follow up with a phone call, especially if you research and find out what they may like.

Real-Life Example: Natalie, who was looking to acquire a small café, sent personalized coffee gifts to café owners in her target area. Her gesture made her memorable, and when she followed up with calls, the owners were more receptive to conversations about selling. This tactic led to a successful acquisition with little competition.

Pros:

Strong First Impression: A thoughtful gift creates a positive impression and opens doors
Increased Engagement: Owners are more likely to engage after receiving something personal

Cons:

Cost: Depending on the gift and delivery, this tactic can add to your acquisition costs

Likelihood of Success:

Moderate to High: A thoughtful gesture can significantly increase the chance of success when following up with cold calls.

8. The Anonymous Marketplace (A Benefit of Village Wellth’s Free Online Marketplace)

Village Wellth’s online marketplace includes an innovative tool that helps buyers find off-market businesses that match their acquisition criteria. This tool allows you to scale your search efficiently and have business owners contact you.

Real-Life Example: Andrew wanted to buy a SaaS company but didn’t want to compete with other buyers on the open market. Using Village Wellth’s online marketplace, he generated a list of potential targets and connected with business owners who were open to selling.

Pros:

Off-Market Deals: Access deals you won’t see on other platforms. Many sellers want to remain anonymous when they sell their business to avoid frightening employees, suppliers, or other stakeholders. Village Wellth allows them to build an anonymous account and reach out to buyers that match their business.
Free: Nothing is better than free!

Cons:

‍Speed: Sellers are looking to sell their business, so they may also reach out to other buyers. If you get a message, act fast.

Finding a Business to Buy

Finding a business to buy isn’t easy, but it isn’t rocket science either. Using the methods mentioned above will help guide your search for a business.

As you start your search, keep in mind what you’re searching for.

Don’t go out and browse every single opportunity on the market. Define what you need from a successful acquisition and how much time and money you can put into your venture.

Remember, a focused search strategy matters as much as the “how” in finding a business to buy.

Start your business search by signing up for a free buyer profile on the Village Wellth platform.

Browse hundreds of listings, have sellers reach out to you, and get access to off-market listings.

Build Your Free Profile Today