There is a general misconception that only businesses in trouble are for sale.  The truth is that unprofitable businesses are very difficult to sell.  Most acquisitions involve profitable businesses where the owner is willing to sell due to: retirement, ill health, partnership problems, family problems, burn out, desire to go into another profession, or under capitalization. 

·         Suppliers may be good sources of information regarding businesses for sale within the specified industries.  Calling or writing to these suppliers and vendors and making them aware of your acquisition criteria may surface several prospective sellers that are not actively on the market, but would consider selling.

·         Using direct mail to contact business owners whose businesses meet your general acquisition criteria can generate potential seller prospects.  This method is frequently used by business brokers to seek out business owners who desire to sell.  A short coming of this method is that you are contacting owners who may not be actively for sale and therefore, their motivation to sell may not be very strong which often results in unreasonable prices and terms of sale.  

·         Business Brokers can be a valuable resource of businesses for sale.  Their full time job is to contact business owners and find those who are motivated to sell.  Brokers have usually helped the business owner with determining a reasonable value for the business.  Business brokers usually are aware of the financing resources and can help direct buyers to those sources best suited for specified business investments.  The broker’s fee is typically paid by the seller and is usually based on the selling price. 

·         Searching the Internet is the newest method for finding businesses for sale.  Most business brokers have web sites where they provide a list of businesses they have for sale.  There are several Business For Sale national web sites where both brokers and business owners list their businesses for sale.  These sites include: Bizquest, BizBuySell, GlobalBx, BusinessBroker.net, USA Bizmart, and Business Mart.  In addition to providing a list of businesses for sale, these sites also provide educational material regarding how to buy, sell, and value a business. 

Jeffrey D. Jones, ASA, CBA, CBI

Business broker and appraiser for the past 40 years.  As president of Certified Appraisers, Inc., he manages the firm's multi-discipline appraisal practice, which includes valuation of businesses, machinery & equipment and real estate.  As President of Advanced Business Brokers, Inc., he and his staff have been involved in over one thousand business sales since 1976.   Jeff holds a Masters Degree from Pepperdine University and is licensed by the Texas Real Estate Commission.  He is a designated member of the American Society of Appraisers (ASA); the Institute of Business Appraisers (CBA); Texas Association of Business Brokers (BCB); and the International Business Brokers Association (CBI).

We invite all of you to get a discussion going.  Please submit your comments at the end of this article, Thanks.