Explore the ins and outs of buying a business. This guide provides actionable advice on finding deals, valuing companies, and navigating the acquisition process.
People don’t talk enough about the best way to become an entrepreneur: buy a business.
There are thousands of businesses for sale right now—many of them public, and even more private. Some are listed. Others aren’t. Owners don’t always announce they want out, but they’ll listen if someone serious comes along.
So the problem isn’t whether there are businesses for sale—it’s how to find the right ones and know what you’re looking at when you find them.
Tupelo’s marketplace makes this easier. Thousands of listings. NDAs handled in a click. Brokers who actually respond. Check it out here.
There are three main paths:
1. Marketplaces
Most buyers start here. Marketplaces like BizBuySell aggregate listings from business brokers and direct from business owners. These range from $50K Boba Shops to $5M+ manufacturing firms. BizBuySell has the largest selection of inventory.
The problem is popular marketplaces are not transparent, do not yield a high response rate from the listing broker, and are riddled with dead listings - meaning the business is not actually for sale. Listings usually hide the name and location of the business, and details are vague until you sign an NDA. Even after the NDA is executed there is a process to receiving relevant documentation.
Tupelo’s marketplace simplifies this. It’s faster (you can sign NDAs on the platform) and more responsive (brokers actually reply). It's the most direct way to see what’s out there.
2. Direct Outreach
This method feels like cold-calling—and basically is. You pick an industry, make a list of businesses you like, find the owners’ emails, phone numbers and address, and reach out and ask if they’d ever consider selling.
Most won’t. But a few will. And those can be better deals: less competition and potentially better terms.
This method is harder and take longer to yield results. You need data, time, and thick skin. It’s a numbers game.
3. Referrals
Here’s a hack: make sure everyone in your life knows you’re looking for a business. Tell your CPA. Tell your lawyer. Tell your real estate agent. Tell the guy who sells restaurant supplies.
Business owners talk to these people long before they talk to a broker or a cold caller.
Many deals change hands quietly, through networks. You want to be part of those networks.
Buyers want the same thing: recurring revenue, passive ownership, loyal staff, transferable contracts, recession resistance.
But most businesses aren’t 100% like that.
They’re messy. Owners are burned out. Records are incomplete. Sales are flat. Key employees are threatening to leave.
That doesn’t make them bad. It just means they’re real. And for the right buyer, that “hair” is opportunity.
Most businesses for sale fall under $1M in revenue. As you go up the size ladder, competition gets fierce—because the economics get better, and institutional buyers (search funds, PE firms, family offices) start circling.
Finding a business to buy is a long process. The headlines make it sound like deals happen overnight. They don’t.
You’ll send thousands of emails, take hundreds of calls, and underwrite dozens of deals before you close one. It’s slow, frustrating, and full of dead ends.
The four biggest obstacles:
Let’s break two of the major issues down.
How to Create Deal Flow
How to Get Brokers to Respond
You don’t need perfection. You need clarity.
Ask:
These are surface-level questions. Ask them early. If it passes, then go deeper: financials, contracts, employees, lease, etc.
These aren’t automatic deal-killers—but they should slow you down.
In the SMB space, most businesses are priced using multiples of earnings—usually Seller’s Discretionary Earnings (SDE).
Here’s how to think about valuation:
If you're using SBA financing, remember the lender needs to hit a 1.25x DSCR (debt service coverage ratio). That puts a hard cap on how much you can pay, if you're looking for SBA financing with standard distribution 80-10-10.
There are thousands of businesses for sale right now. Most won’t be right for you. That’s okay. This is a filtering game.
The best buyers are persistent, process-driven, and fast at saying “no.” That frees up their time to go deeper on the ones that might actually work.
If you’re serious about buying a business in 2025, start now. Set up your systems. Build relationships. Be patient.
And if you want help—reach out. Tupelo helped over 1,000 businesses change hands last year. We know what we’re doing, and we’re happy to help.