No. You are not required to use a business broker to purchase a business. However, working with an experienced business broker or M&A advisor can help you navigate the acquisition process, identify opportunities, and understand the steps involved in completing a transaction.
Access to Opportunities – Business brokers maintain listings and professional relationships that can help buyers identify available businesses aligned with their acquisition criteria.
Business Evaluation – Brokers can help buyers understand financial information, business operations, valuation considerations, and factors that may influence marketability and transaction structure.
Transaction Coordination – Brokers facilitate communication between parties, coordinate information requests, monitor transaction milestones, and help manage the process from initial inquiry through closing.
Negotiation & Transaction Guidance – Depending on the representation relationship, a broker may assist with evaluating offers, communicating proposed terms, and negotiating transaction details.
Financing Resources – Experienced brokers often maintain relationships with acquisition lenders and can help coordinate financing requirements during the transaction.
Professional Relationships – Brokers can help coordinate with attorneys, accountants, lenders, escrow providers, and other professionals involved in the acquisition.
Understanding Representation – A broker marketing a business for sale may represent the seller rather than the buyer. Buyers should understand whom the broker represents and what services they can expect. Applicable agency relationships and disclosures should be established in accordance with California law.
Dedicated Buyer Representation – Buyers seeking assistance with acquisition strategy, targeted searches, business evaluation, or negotiations may benefit from engaging a broker specifically to represent their interests under a separate written agreement.
Independent Due Diligence – Regardless of broker involvement, buyers should engage appropriate legal, accounting, and financial professionals to independently verify information and evaluate acquisition risks.
At Murphy Business Sales, we assist qualified buyers with available acquisition opportunities and may provide dedicated buyer advisory services through separate representation engagements.
The most important consideration is understanding the broker's role, your responsibilities as a buyer, and the professional guidance needed to make an informed acquisition decision.
Whether you're beginning your search or evaluating a specific opportunity, our team can help you explore available businesses and navigate the acquisition process.
Many business acquisitions include a transition period during which the seller provides training and assistance to help the new owner understand the business and assume operational responsibilities.
The amount of training and support depends on the business's complexity, the buyer's experience, and the terms negotiated in the purchase agreement.
Operational Training – The seller may provide instruction on daily operations, business systems, procedures, equipment, and administrative responsibilities.
Employee & Management Introductions – The seller may help introduce the new owner to employees, managers, and other key personnel to support a smooth transition.
Customer & Vendor Relationships – Depending on the business, the seller may assist with introductions to important customers, suppliers, service providers, and other business relationships.
Licensing & Technical Requirements – Businesses requiring specialized licenses, certifications, or technical expertise may need additional transition planning. Buyers should verify that all applicable licensing and regulatory requirements can be satisfied after closing.
Transition Period – Some acquisitions include several weeks of training, while others require several months or longer. The appropriate duration depends on the business and the buyer's needs.
Extended Consulting or Employment – In certain transactions, the seller may agree to remain involved under a consulting or employment agreement. Compensation, responsibilities, and duration should be clearly established.
Purchase Agreement Terms – Training obligations should be documented in the purchase agreement or a separate transition agreement, including the duration, scope of assistance, scheduling, and any additional compensation.
At Murphy Business Sales, we help buyers and sellers discuss transition expectations and coordinate appropriate arrangements as part of the acquisition process.
Seller training can be valuable, but buyers should ensure they have the experience, resources, and management capabilities necessary to operate the business successfully after the transition ends.
Whether you're beginning your search or evaluating a specific opportunity, our team can help you explore available businesses and navigate the acquisition process.
Due diligence is the process of investigating and verifying important information about a business before completing an acquisition. It allows buyers to confirm the seller's representations, identify potential risks, and determine whether the transaction remains appropriate.
Due diligence typically begins after the buyer and seller reach an agreement on preliminary transaction terms, although the timing and scope vary by transaction.
Financial Verification – Review tax returns, financial statements, bank records, revenue reports, expenses, and supporting documentation to verify the business's reported financial performance.
Earnings Analysis – Evaluate Seller's Discretionary Earnings (SDE) or EBITDA, including proposed adjustments and add-backs, to determine whether reported earnings are accurate and sustainable.
Operational Review – Examine employees, management responsibilities, equipment, inventory, operating procedures, and the business's dependence on its current owner.
Customer & Revenue Analysis – Evaluate customer concentration, recurring revenue, contracts, retention rates, and the stability of customer relationships.
Legal & Regulatory Review – Have qualified legal professionals evaluate contracts, leases, licenses, permits, potential liabilities, litigation, and applicable regulatory requirements.
Financing & Lender Requirements – Coordinate with the acquisition lender to satisfy underwriting requirements, business valuation conditions, financial verification, and other financing requirements.
Third-Party Approvals – Determine whether the transaction requires landlord consent, franchise approval, licensing transfers, or other authorizations.
Professional Advisors – Buyers should engage appropriate accounting, legal, financial, and industry professionals to independently evaluate the business and its risks.
Addressing Findings – If due diligence identifies discrepancies or concerns, the parties may seek clarification, negotiate adjustments, establish additional protections, or reconsider the transaction.
At Murphy Business Sales, our team helps coordinate information requests, monitor deadlines, facilitate communication, and manage transaction milestones as appropriate to our representation relationship.
Due diligence is ultimately the buyer's responsibility. A thorough investigation helps ensure that the decision to acquire a business is based on verified information rather than assumptions.
Whether you're beginning your search or evaluating a specific opportunity, our team can help you explore available businesses and navigate the acquisition process.
Once you've evaluated a business and determined that it aligns with your acquisition objectives, the next step is to submit an offer outlining the proposed purchase price, transaction structure, and other important terms.
An offer may be presented through a Letter of Intent (LOI) or a formal purchase agreement, depending on the transaction and the parties' preferences.
Purchase Price – Determine an offer price based on the business's financial performance, market value, operational characteristics, and your investment objectives.
Transaction Structure – Specify whether the proposed acquisition involves purchasing business assets or ownership interests, along with any significant assets, liabilities, or working capital included in the transaction.
Financing Terms – Identify whether the purchase will involve cash, SBA financing, conventional financing, seller financing, or a combination of funding sources.
Due Diligence – Establish an appropriate period to verify financial information, evaluate operations, review contracts, and investigate potential risks.
Contingencies – Depending on the transaction, the offer may include conditions involving financing approval, satisfactory due diligence, lease assignment, licensing, franchise approval, or other requirements.
Seller Transition – Outline expectations regarding training, consulting, employment arrangements, or other assistance the seller may provide following closing.
Closing Timeline – Establish a proposed closing date and important milestones, allowing sufficient time for financing, due diligence, documentation, and required approvals.
Professional Review – Buyers should consult qualified legal, accounting, and financial advisors before signing transaction documents. Certain provisions of an LOI may be legally binding even when the proposed acquisition itself remains nonbinding.
At Murphy Business Sales, we help facilitate offers, communicate proposed terms, coordinate negotiations, and guide the transaction process as appropriate to our representation relationship.
A well-structured offer considers more than purchase price. Financing feasibility, contingencies, transaction structure, and the seller's objectives can all influence whether an offer is accepted.
Whether you're beginning your search or evaluating a specific opportunity, our team can help you explore available businesses and navigate the acquisition process.
Once you identify a business that interests you, the next step is to evaluate the opportunity, confirm that it aligns with your acquisition objectives, and determine whether you want to pursue a purchase.
At Murphy Business Sales, we follow a structured process to help qualified buyers navigate the initial evaluation and acquisition process.
Confidentiality Agreement – Before receiving detailed information, buyers are generally required to execute a Non-Disclosure Agreement (NDA) to protect the seller's confidential business information.
Buyer Qualification – We review your acquisition objectives, financial resources, relevant experience, and financing readiness. Proof of funds or lender prequalification may be required.
Review Business Information – Qualified buyers may receive a Confidential Information Memorandum (CIM), financial summaries, and other available business information, subject to seller authorization.
Ask Questions – Buyers can submit questions regarding financial performance, operations, employees, customer relationships, and other important business characteristics.
Meet the Seller – When appropriate, we coordinate a meeting or site visit to help you better understand the business and discuss the opportunity.
Evaluate Financing – If acquisition financing is required, we encourage buyers to consult with an appropriate lender to confirm their purchasing capacity and financing options.
Submit an Offer – If the opportunity aligns with your objectives, the next step may be submitting a Letter of Intent (LOI) or purchase offer outlining the proposed transaction terms.
Due Diligence & Closing – Once the parties reach an appropriate agreement, the transaction progresses through due diligence, financing, required approvals, definitive documentation, and closing.
The specific process and information available depend on the business, seller requirements, and the nature of our representation relationship.
Our goal is to help qualified buyers evaluate opportunities efficiently while maintaining confidentiality and supporting an organized transaction process.
Whether you're beginning your search or evaluating a specific opportunity, our team can help you explore available businesses and navigate the acquisition process.
The time required to buy a business depends on the type of business, purchase price, financing requirements, complexity of the transaction, and how prepared the buyer and seller are to complete the acquisition.
Once a buyer identifies a suitable business and reaches an agreement with the seller, many acquisitions take approximately 60–120 days to close. However, transactions involving complex due diligence, SBA financing, licensing requirements, or third-party approvals may take longer.
Finding the Right Business – The search process may take several weeks or many months, depending on your acquisition criteria, financial qualifications, and available opportunities.
Initial Evaluation & Negotiations – Reviewing business information, meeting the seller, and negotiating an acceptable offer may take several weeks.
Due Diligence – Buyers typically need time to verify financial performance, review operations, evaluate risks, and work with their professional advisors.
Acquisition Financing – SBA and conventional business acquisition loans require underwriting, financial verification, and lender approval. Financing timelines vary by lender and transaction.
Third-Party Approvals – Lease assignments, licensing transfers, franchise approvals, and other required authorizations can affect the closing timeline.
Closing & Transition – Once financing, due diligence, and other closing conditions are satisfied, the parties coordinate closing documents, funding, and ownership transfer.
At Murphy Business Sales, our team follows a structured transaction process to coordinate participants, monitor deadlines, facilitate communication, and help keep acquisitions progressing toward closing.
Buyers who establish their acquisition criteria, financial readiness, and professional advisory team early are generally better positioned to complete a transaction efficiently.
Whether you're beginning your search or evaluating a specific opportunity, our team can help you explore available businesses and navigate the acquisition process.
Reviewing a business's financial information is one of the most important parts of evaluating an acquisition. Buyers should understand how the business generates revenue, its historical profitability, cash flow, financial obligations, and whether its earnings are sustainable under new ownership.
Business Tax Returns – Review at least three years of federal business tax returns, when available, and compare reported revenue and expenses with the company's financial statements.
Profit & Loss Statements – Examine historical and current year-to-date revenue, cost of goods sold, operating expenses, and profitability. Look for trends, unusual fluctuations, and potential inconsistencies.
Balance Sheets – Review assets, liabilities, accounts receivable, accounts payable, outstanding debt, and working capital requirements.
Seller's Discretionary Earnings (SDE) or EBITDA – Understand how earnings have been calculated, including owner compensation, discretionary expenses, and proposed adjustments. Verify that financial add-backs are legitimate, documented, and appropriate.
Cash Flow & Debt Service – Evaluate whether the business generates sufficient cash flow to support acquisition financing, ongoing operations, necessary reinvestment, and your financial objectives.
Revenue Quality – Examine customer concentration, recurring revenue, contracts, customer retention, and the reliability of future revenue.
Assets & Capital Requirements – Evaluate equipment condition, inventory, anticipated capital expenditures, and the working capital necessary to operate the business after closing.
Financial Verification – During due diligence, buyers and their professional advisors may review bank statements, payroll records, accounting reports, sales records, and other supporting documentation to verify the seller's financial representations.
Buyers should work with qualified accountants, lenders, and other appropriate advisors to independently evaluate the financial information and understand the risks associated with the acquisition.
At Murphy Business Sales, we help facilitate financial information requests and coordinate the due diligence process as appropriate to our role in the transaction.
Remember: The goal is not simply to verify historical profitability. It is to determine whether the business can generate sufficient cash flow and operate successfully under new ownership.
Whether you're beginning your search or evaluating a specific opportunity, our team can help you explore available businesses and navigate the acquisition process.
When purchasing a business, you will generally be required to sign a confidentiality agreement, also known as a Non-Disclosure Agreement (NDA), before receiving detailed information about the company.
Protecting Sensitive Information – Business owners share confidential financial records, operational details, customer information, and other proprietary information during the selling process. An NDA helps protect this information from unauthorized disclosure or misuse.
Protecting Employees & Customers – Premature disclosure of a potential sale can create uncertainty among employees, customers, vendors, and other stakeholders.
Establishing Buyer Responsibilities – An NDA defines how confidential information may be used, who may access it, and the buyer's obligations regarding its protection.
Preventing Unauthorized Contact – Confidentiality agreements may restrict buyers from contacting employees, customers, suppliers, landlords, or other parties without the seller's prior authorization.
Access to Business Information – Once the appropriate confidentiality and qualification requirements are satisfied, buyers may receive additional information about the business, depending on the seller's authorization and the stage of the transaction.
Buyer Qualification – Signing an NDA does not automatically qualify someone to receive all business information. Buyers may also need to demonstrate financial capacity, relevant experience, and genuine acquisition interest.
At Murphy Business Sales, confidentiality is an essential part of our transaction process. We use confidentiality agreements, buyer qualification procedures, and controlled information sharing to help protect our seller clients.
Signing an NDA is a standard step in exploring a business acquisition. It helps create an appropriate environment for buyers and sellers to exchange information while protecting the business.
Whether you're beginning your search or evaluating a specific opportunity, our team can help you explore available businesses and navigate the acquisition process.
Businesses available for acquisition can be found through business brokerage firms, online marketplaces, professional networks, and direct outreach to business owners. However, not every business for sale is publicly advertised.
Business Brokerage Websites – Business brokers maintain listings of available businesses, often providing preliminary information about asking prices, financial performance, industries, and locations.
Online Business Marketplaces – Platforms such as BizBuySell and other business-for-sale websites allow buyers to search opportunities by industry, location, price, and other criteria.
Broker Networks – Established brokerage firms may provide access to opportunities through their professional relationships and affiliated brokers. Murphy Business maintains a national network of business brokers and M&A advisors.
Confidential Opportunities – Some businesses are marketed selectively to qualified buyers rather than publicly advertised. Access to these opportunities may require demonstrating financial qualifications and relevant acquisition experience.
Targeted Acquisition Searches – Buyers seeking businesses with specific characteristics may benefit from a targeted search strategy. Depending on the engagement, this can involve identifying potential acquisition candidates and conducting confidential outreach to owners.
Buyer Qualification – Before receiving detailed business information, prospective buyers are generally required to execute a confidentiality agreement and provide information about their acquisition objectives, financial resources, and financing readiness.
At Murphy Business Sales, we help qualified buyers explore available opportunities through our listings, professional relationships, and Murphy's national network. Dedicated acquisition search services may also be available through a separate buyer representation engagement.
Start by defining your acquisition criteria, establishing your purchasing capacity, and exploring our current businesses for sale.
Whether you're beginning your search or evaluating a specific opportunity, our team can help you explore available businesses and navigate the acquisition process.
Determining what a business is worth requires evaluating its financial performance, cash flow, operating characteristics, industry conditions, and the prices buyers are willing to pay for comparable businesses.
While the asking price provides a starting point, it does not necessarily represent the business's fair market value.
Financial Performance – Buyers typically evaluate historical revenue, profitability, cash flow, and earnings trends. Small businesses are often valued using Seller's Discretionary Earnings (SDE), while larger companies may be valued using EBITDA.
Earnings Multiples – Many businesses are valued using a multiple of normalized earnings. The appropriate multiple depends on the industry, business size, financial stability, growth potential, and perceived risk.
Comparable Transactions – Sales of similar businesses can provide useful market evidence, although differences in size, profitability, operations, and transaction terms must be considered.
Operational Characteristics – Recurring revenue, customer concentration, management capabilities, owner dependence, and transferable systems can significantly influence business value.
Assets & Liabilities – Equipment, inventory, working capital, real estate, outstanding debt, and other assets or liabilities may affect the purchase price and transaction structure.
Financing Considerations – A business's ability to support acquisition financing can influence what qualified buyers are realistically able to pay.
Professional Valuation – Depending on the transaction, a Broker's Opinion of Value or formal business valuation may help establish an informed understanding of market value.
At Murphy Business Sales, we help buyers understand the financial and operational factors influencing business value and coordinate appropriate valuation resources when needed.
A business is worth more than a simple multiple of earnings. The right purchase price should reflect financial performance, risk, financing feasibility, and the buyer's investment objectives.
Whether you're beginning your search or evaluating a specific opportunity, our team can help you explore available businesses and navigate the acquisition process.
Yes. SBA-backed financing is one of the most common ways qualified buyers finance the acquisition of an established small business. The SBA 7(a) loan program allows eligible buyers to finance business acquisitions through participating lenders, subject to SBA eligibility requirements and lender approval.
Loan Amounts – SBA 7(a) loans are available up to $5 million. Depending on the transaction, financing may cover the business acquisition, eligible closing costs, equipment, and working capital.
Down Payment – Initial business acquisitions generally require a minimum equity injection of 10% of the total project cost. Additional funds may be required depending on the transaction and lender underwriting.
Cash Flow Requirements – The business must demonstrate sufficient cash flow to support the proposed debt payments. Under SBA requirements effective October 1, 2026, initial acquisitions generally must demonstrate a minimum 1.25 debt service coverage ratio (DSCR) using qualifying historical financial performance.
Buyer Qualifications – Lenders evaluate the buyer's credit history, available capital, relevant experience, financial condition, and ability to operate the acquired business successfully.
Business Qualifications – The business must meet SBA eligibility requirements, demonstrate adequate financial performance, and satisfy applicable valuation and underwriting standards.
Seller Financing – Seller financing may help structure an acquisition. Under certain conditions, a qualifying seller note may count toward a portion of the required equity injection, subject to SBA rules and lender approval.
Loan Terms – SBA 7(a) business acquisition loans commonly have repayment terms of up to 10 years when commercial real estate is not involved. Loan terms and interest rates depend on the financing structure and applicable SBA requirements.
At Murphy Business Sales, we encourage buyers to obtain lender prequalification early in the acquisition process. We can help coordinate introductions to acquisition lenders and provide transaction information as appropriate to our role.
Before seriously pursuing an acquisition, understanding your financing options and obtaining lender prequalification can help establish a realistic purchasing budget and strengthen your position as a buyer.
Whether you're beginning your search or evaluating a specific opportunity, our team can help you explore available businesses and navigate the acquisition process.
The amount of money needed to buy a business depends on the purchase price, financing structure, lender requirements, and additional capital needed to complete the acquisition and operate the business.
Down Payment – Buyers using SBA financing may be able to acquire an eligible business with an equity injection of approximately 10% of the total project cost, although requirements vary. Conventional financing and other acquisition structures may require substantially more.
Working Capital – Buyers should have sufficient funds to cover payroll, inventory, operating expenses, and other financial obligations following closing. Working capital may be included in the acquisition financing when permitted by the lender.
Closing Costs – Additional expenses may include legal fees, accounting services, lender fees, business valuations, escrow charges, and other transaction-related costs.
Post-Acquisition Reserves – Maintaining additional liquidity can help buyers manage unexpected expenses, operational changes, or temporary declines in revenue.
Seller Financing – Some sellers may agree to finance a portion of the purchase price. The availability and terms of seller financing depend on the transaction and any applicable lender requirements.
Example: A business with a $1 million purchase price may require approximately $100,000 or more in buyer equity under an eligible SBA financing structure. However, the total project cost may exceed the purchase price, increasing the required equity contribution. Buyers may also need additional funds for closing costs and reserves.
At Murphy Business Sales, we encourage buyers to establish their financial qualifications and obtain lender prequalification early in the acquisition process.
Understanding your purchasing capacity before searching for a business helps you focus on realistic opportunities and improves your ability to complete a transaction.
Whether you're beginning your search or evaluating a specific opportunity, our team can help you explore available businesses and navigate the acquisition process.
Buying an established business can offer several advantages over starting a new company, particularly when the business has a history of profitability, established operations, and an existing customer base.
Established Revenue & Cash Flow – An existing business may generate income from the first day of ownership, rather than requiring years to develop a customer base.
Existing Customers & Relationships – Established businesses often have customer relationships, supplier agreements, and market recognition that would take time to develop independently.
Employees & Operating Systems – An acquisition may include trained employees, documented processes, equipment, and operational infrastructure.
Historical Financial Performance – Buyers can review previous financial results to help evaluate profitability, business value, and potential risks.
Financing Opportunities – Certain established businesses may qualify for acquisition financing, including SBA-backed loans, depending on the buyer's qualifications and the business's financial performance.
Growth Potential – Acquiring an existing business may provide opportunities to expand services, improve operations, enter new markets, or build upon an established foundation.
However, acquiring a business also involves risks, including potential liabilities, customer concentration, operational challenges, and the possibility that historical performance may not continue.
At Murphy Business Sales, we help qualified buyers understand the acquisition process and evaluate opportunities, with services appropriate to our role in each transaction.
Whether you're beginning your search or evaluating a specific opportunity, our team can help you explore available businesses and navigate the acquisition process.
The right business depends on your financial resources, professional experience, personal interests, lifestyle objectives, and desired level of involvement in daily operations.
Before pursuing an acquisition, consider the following factors:
Financial Capacity – Evaluate your available investment capital, financing options, working capital requirements, and the income you need the business to generate. Your acquisition budget should account for both the purchase price and the capital needed to operate the business after closing.
Skills & Experience – Consider industries where your professional background, management abilities, or technical knowledge may provide an advantage. While prior industry experience can be valuable, transferable skills and a willingness to learn are also important.
Ownership Goals – Determine whether you want to actively operate the business, manage an existing team, or pursue a more strategic ownership role. Different businesses require different levels of owner involvement.
Industry & Business Model – Evaluate customer demand, recurring revenue, profit margins, competitive conditions, and long-term industry prospects. Consider whether the company sells products, provides services, or operates through a combination of both.
Operational Requirements – Understand staffing needs, licensing requirements, management responsibilities, operating hours, and the time commitment necessary to operate the business successfully.
Financial Performance & Growth Potential – Review historical profitability, cash flow, customer concentration, and opportunities for improvement. A struggling business may present opportunities, but a turnaround can require substantial additional capital, time, and expertise.
Franchise Opportunities – Franchises may offer established operating systems, brand recognition, training, and ongoing support. However, buyers should carefully evaluate franchise fees, contractual obligations, operating restrictions, and the financial performance of the specific business.
Risk & Transferability – Consider how dependent the business is on its current owner, whether key employees and customer relationships are likely to remain, and what challenges may arise during the ownership transition.
At Murphy Business Sales, we help prospective buyers clarify their acquisition criteria, understand financial qualification requirements, and explore available businesses that align with their objectives.
The best acquisition is not necessarily the largest or most profitable business. It's one that aligns with your financial capabilities, experience, risk tolerance, and ownership goals.
Whether you're beginning your search or evaluating a specific opportunity, our team can help you explore available businesses and navigate the acquisition process.
Yes. Conducting thorough due diligence is one of the most important steps in buying a business. Due diligence allows you to verify the seller's representations, evaluate financial performance, identify potential risks, and determine whether the acquisition meets your objectives.
Buyers should evaluate several important areas:
Financial Due Diligence – Review business tax returns, profit and loss statements, balance sheets, cash flow, outstanding debt, and other financial records. Verify reported revenue, profitability, and adjustments used to calculate Seller's Discretionary Earnings (SDE) or EBITDA.
Operational Due Diligence – Evaluate employees, management responsibilities, operating procedures, equipment, inventory, customer relationships, and the company's dependence on its current owner.
Legal & Regulatory Due Diligence – Have qualified legal professionals review material contracts, leases, licenses, permits, potential liabilities, litigation, and applicable regulatory requirements.
Commercial Due Diligence – Evaluate industry conditions, competition, customer concentration, recurring revenue, supplier relationships, and opportunities for future growth.
Financing & Transaction Requirements – Confirm that the acquisition meets applicable lender requirements and identify any necessary approvals, lease assignments, licensing transfers, or other closing conditions.
Professional Advisors – Buyers should engage appropriate legal, accounting, financial, and industry professionals to independently evaluate the business and its risks.
At Murphy Business Sales, we help coordinate the due diligence process, facilitate information requests, and monitor transaction milestones as appropriate to our role in the transaction.
Due diligence does not eliminate every acquisition risk, but it helps buyers make informed decisions before committing to ownership.
Whether you're beginning your search or evaluating a specific opportunity, our team can help you explore available businesses and navigate the acquisition process.