BTB Buyer Guide
How to Buy an Existing Business
Buying an existing business usually means evaluating both the company and the transaction. Start with what the business does and how it earns money, then verify the financial claims, understand the financing structure, investigate risks, negotiate terms, and plan the transition.
BTB guide · Updated September 30, 2026
A practical buying path
- Define the type of business and price range you can realistically pursue.
- Review listing claims without treating them as verified facts.
- Reconcile revenue, expenses, SDE or other cash-flow measures against source documents.
- Model financing, working capital and other cash required to close.
- Complete financial, operational, commercial, people, legal and compliance due diligence.
- Decide whether the transaction is proposed as an asset or equity purchase and obtain professional advice on the consequences.
- Build an offer and, when appropriate, an LOI that reflect what still needs verification.
- Plan closing, transition support and the first operating period after takeover.
Put the guide to work
Educational information only. Verify transaction, legal, tax, accounting and lending questions with qualified professionals and current source material.
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Business buying guide · SDE explained · Valuation guide · Due diligence · Seller financing · Making an offer