Buyer's FAQ: Your Questions About How to Buy a Business, Answered
Expert Answers to All Your Business Acquisition Questions
Navigating the journey to buying a business comes with many questions. Our comprehensive Buyer's FAQ provides clear, expert answers to guide you through every stage of the business acquisition process.
From understanding due diligence to securing financing, find the information you need to make confident decisions
What is Due Diligence When Buying a Business?
Due diligence is the critical research phase of buying a business—it’s your opportunity to dig deep and confirm the facts. Think of it as a comprehensive business background check.
You’ll review financial records, legal documents, employee structures, customer contracts, and more to ensure the business matches what’s being represented. This essential step helps you avoid surprises and gives you the confidence to move forward with a solid deal during your business acquisition.
Why Buy an Existing Business? Advantages of Buying a Company
Choosing to buy an established business often offers a faster and more reliable path to ownership compared to starting one from scratch. Instead of building from the ground up, you're taking over a proven model—complete with existing systems, staff, equipment, customers, and immediate cash flow. Key advantages of buying an existing business include:
For Immediate income potential
Established customer base
Operational infrastructure already in place
Easier to secure financing due to historical performance
Why Use a Business Broker When Buying a Business?
A business broker is your advocate and advisor throughout the entire buying a business process.
They help you find the right business faster, provide access to confidential listings, expertly guide negotiations, and meticulously handle all documentation.
And the best part? The seller typically pays the business broker’s fee, meaning you get professional support at no extra cost when you buy a company.
Can I Get Financing to Buy a Business?
While traditional bank financing can be challenging without extensive industry experience or strong collateral, many sellers are open to seller financing (also called seller carry), which can make buying a business more accessible.
In some cases, you may also qualify for SBA loans for business acquisition or utilize retirement funds through a ROBS (Rollover for Business Startups) strategy. Your experienced business broker can help you explore all available business financing options.
How Do I Make an Offer to Buy a Business?
When you’re ready to move forward with a business purchase, your Alta Business Advisor will help you prepare a formal Offer to Purchase.
We use professionally drafted agreements designed to protect both business buyer and seller, covering everything from purchase price and terms to contingencies and timelines for your business acquisition.
Do I Need an Attorney When Buying a Business?
While not always legally required, it’s highly recommended to have a qualified business attorney review all contracts before finalizing your business purchase.
Your business broker may recommend involving legal counsel to ensure your interests are fully protected throughout the business acquisition process.
How Do Sellers Determine a Business's Asking Price?
There’s no one-size-fits-all pricing method for a business for sale. Sellers—often with the expert help of a business broker—use different business valuation strategies depending on the business type. The asking price is usually based on:
Historical earnings (SDE or EBITDA)
Tangible assets like inventory and equipment
Market trends and industry comparisons
Growth potential and cash flow consistency.
Looking at a business to buy. Use our Free Business Valuation Calculator.
Are Most Businesses for Sale Losing Money?
Not at all. It’s a common myth that a business for sale must be in trouble to be on the market.
In fact, many businesses for sale are highly profitable and performing exceptionally well.
Owners sell for a variety of strategic and personal reasons, including:
Capitalizing on success – Selling at peak value
Pursuing new ventures – Entrepreneurs ready for the next challenge
Life changes – Relocation, health issues, or family obligations
Retirement – Planning for the future and securing wealth
Partnership exits – When partners decide to part ways
Market timing – Taking advantage of high market demand
Ready to Buy a Business with Confidence?
Alta Business Advisors is committed to helping you make informed, confident decisions throughout your business acquisition journey. Don't hesitate to reach out!
Have more quesions? Schedule a Free Buyer Consultation with a Business Broker
Curious about a specific business's worth? Use our Free Business Valuation Calculator. Considering a larger acquisition? Try our Free EBITDA Business Valuation Calculator. Or call us directly at 1-801-554-1050 for immediate assistance.
Contact Alta Business Advisors
111 S Main St., # 2200,
Salt Lake City, UT 84111
801-554-1050
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