Buyer's Frequently Asked Questions (FAQs)

What is Due Diligence?

Due diligence is the research phase of buying a business—it’s your opportunity to dig deep and confirm the facts. Think of it as a business background check. You’ll review financial records, legal documents, employee structures, customer contracts, and more to make sure the business matches what’s being represented. This step helps you avoid surprises and gives you the confidence to move forward with a solid deal.

Why Buy an Existing Business Instead of Starting One?

Buying an established business often offers a faster and more reliable path to ownership. Instead of building something from the ground up, you're taking over a proven model—complete with systems, staff, equipment, customers, and cash flow.

Key advantages of buying a business include:

• Immediate income potential

• Established customer base

• Operational infrastructure already in place

• Easier to secure financing due to historical performance

Why Should I Work with a Business Broker?

A business broker is your advocate and advisor throughout the buying process. They help you find the right business faster, provide access to confidential listings, guide negotiations, and handle documentation.

And the best part? The seller typically pays the broker’s fee, so you get professional support at no extra cost to you.

Can I Get Financing to Buy a Business?

Traditional bank financing can be difficult without industry experience or strong collateral—but many sellers are open to seller financing (also called seller carry), which can make buying more accessible.

In some cases, you may also qualify for SBA loans or use retirement funds through a ROBS (Rollover for Business Startups) strategy. Your business broker can help you explore your options.

How Do I Make an Offer on a Business?

When you’re ready to move forward, your Upland Business Broker will help you prepare a formal offer to purchase. We use professionally drafted agreements that protect both buyer and seller, covering everything from purchase price and terms to contingencies and timelines.

Do I Need an Attorney?

While not always required, it’s smart to have a business attorney review contracts before finalizing the purchase. Your broker may recommend involving legal counsel to ensure your interests are fully protected.

How Do Sellers Determine the Asking Price?

There’s no one-size-fits-all pricing method. Sellers—often with the help of a business broker—use different valuation strategies depending on the business type.

The 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 must be in trouble to be on the market. In fact, many businesses for sale are profitable and performing well. Owners sell for a variety of 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

Alta Business Advisors is here to help you make informed, confident decisions.

Use our Free Business Valuation Calculator to explore what businesses are worth in today’s market.