Entrepreneurship · Purchasing

What are the best resources for finding a business to buy?

Dan Makfinsky Software and tech entrepreneur

March 14th, 2017

I recently listened to the 'How I Built This' podcast with the founder of 5-hour energy. One of his first ventures was to buy a business and turn it around. How do people go about finding businesses for sale and what are the keys to understanding the financials of those businesses?

Alejandro Cremades Author of The Art of Startup Fundraising & Serial Entrepreneur

March 14th, 2017

You might want to check Flippa as they have a bunch of established businesses in there that are looking to get acquired. ExitRound is another option but might be for larger M&A deals. I personally don't have any experience with the latter.

Dane Madsen Organizational and Operational Strategy Consultant

March 14th, 2017

Find a business broker that specializes in something you understand. Knowing the business will prepare you to understand the financials. Bargava, among other education and training, worked in his parents PVC business prior to buying the PVC-based outdoor furniture business you refer to.

Gary Massey CPA, very interested in the startup community

March 14th, 2017

I suggest working with a CPA with evaluating financials. I do this all the time for my clients. I am always happy to support fellow members of Co-Founders Lab in this way. Feel free to email or call with your questions.

Gary Massey, CPA

Nathan Ricks BYU student, Private Equity Associate, Banker

March 15th, 2017

There are small investment banks which focus on connecting potential buyers with potential sellers. I have personally spent over a year doing this type of sourcing for private equity groups. If you need help finding the proper business to buy, just contact me.

Melissa Rich Passionate, Mission Driven, Strategy, Growth & Impact Leader - Founder, CEO, President, Executive Management

March 15th, 2017

When I was running my business, I was contacted by quite a few business brokers. The most interesting to me was a firm in Kansas City that is retained by senior level transitioning professionals who want to purchase a company. They work closely with their clients to determine their interests and to look for companies that are a match. I got very far along in conversations with a wonderful gentleman. While these conversations fell short of a transaction, I thought the model was very interesting. Check out the DVS group in Kansas City. As far as financial due diligence goes, its the same as any other process, more art than science - but always dig as much as possible and talk to lots of different folks within the organization!