How to find a buyer for your small business
The right buyer is often closer than you think. Here's where small business buyers come from, and how to tell who's serious.
Start close to home
- Your own team. A manager or long-time employee may want to buy. See selling to an employee.
- Family. A son, daughter or relative who already knows the business.
- Competitors and suppliers. A business in the same line may want to grow. Approach them carefully, and only with an NDA.
- Customers. Some loyal customers have dreamed of owning a business like yours.
Reach new buyers
- List your business online. Listing on Heritage Handshake is free, with no commission, and you can keep your business name private.
- Word of mouth. Let your accountant, lawyer and banker know. They often hear of people looking to buy.
- Local business groups. Chambers of commerce and owner groups can be a good place to ask quietly.
Write a clear listing
Buyers want the basics: what the business does, the general area, yearly sales, yearly profit, asking price and why you're selling. Keep it honest and simple. If you're unsure of the price, start with our free estimate.
Check buyers before you share more
- Have a short first call. Ask about their background and why they want this kind of business.
- Ask how they plan to pay: their own savings, a bank or BDC loan, or part paid to you over time.
- Ask them to sign a confidentiality agreement (NDA) before you share your books. A sample outline is in our free resource kit.
- Before you get too far, ask for proof of funds or a lender's pre-approval.
Signs of a tire-kicker
- They want full financials before telling you anything about themselves.
- They won't sign an NDA.
- They can't explain how they'll pay.
- They make a low offer without having looked closely.
Next steps
Once you have a serious buyer and agree the main terms, they usually go into a letter of intent. Bring in your own lawyer and accountant at this point.
See also: How to sell your business without a broker and How to prepare your business for sale.
Common questions
How long does it take to find a buyer?
It varies a lot. Many small business sales take several months to a year or more from first listing to closing day, so starting early helps.
How do I know a buyer is serious?
Serious buyers ask good questions, sign an NDA without fuss, can explain how they'll pay, and are willing to show proof of funds or a lender's pre-approval.
Should I share my financial statements right away?
No. Share a summary first. Share full books only after the buyer signs an NDA and you're comfortable they're serious.
Sources
Ready when you are
Listing is free and takes about 10 minutes. Your details stay private until you choose to share them.