Buying Guide
A plain-language guide for Texas buyers thinking about buying an existing business.
Start with your goals
Before you look at any business, be clear about what you want it to give you. Are you looking to become an owner for the first time, expand a business you already run, or step into a new kind of work? Think about the industries you know or want to learn, the part of Texas where you want to work, how much time you can give the business each week, and when you would like to be in place. Writing those answers down helps keep the search focused on businesses you can realistically buy and run.
Money: how much you need available, in general terms
Most purchases use a mix of the buyer's own money and financing. Buyers typically need some money available of their own, and lenders usually want to see that. Common sources people use, in general terms, are personal savings, home equity, retirement funds, and Small Business Administration (SBA) financing through a lender. Each source has its own rules, tax effects, and risks, and we do not give financial advice. What matters at this stage is being honest about what you have available, what you are willing to use, and what income you need the business to provide after its costs and any loan payments.
Experience and qualifications
Lenders and sellers will ask about your experience, and for good reason: a business is easier to take on when you understand its work, its customers, and its day-to-day demands. Think about the jobs you have held, businesses you have run or helped run, trades or licences you hold, and the parts of a business — sales, operations, staff, bookkeeping — where you are strong and where you would need help. You do not need to have done everything before, but it helps to be clear about what you will learn and who can help you.
Confidentiality before sensitive information
Business owners share sensitive information only when they trust that it will stay private. Before you receive detailed financials, customer lists, or other private information, you will be asked to sign a confidentiality agreement, and a non-disclosure and non-circumvention agreement with a record of showing. Texas law also requires an Information About Brokerage Services (IABS) disclosure. You can read more on the Confidentiality & Forms page. Do not share what you learn about a business with anyone who does not need to know, and do not contact its staff, customers, or suppliers directly unless that is agreed in advance.
Evaluating a business and its cash flow
Look past the headline sales figure. Ask how much cash the business makes after paying its normal costs, what is included in any owner pay, whether sales depend on a few customers, and whether equipment, leases, and staff would carry over. Visit the premises, watch how work is done, and ask how customers are won and kept. Review the financial information carefully with your own advisors, and take time to understand what the business actually does day to day, not only what it looks like on paper.
Offers, due diligence, and closing
When a suitable opportunity is found, we help you understand offers and what the terms mean in practice, including price, how and when it is paid, and any handover or training. Due diligence is the period when you check the business in detail, with your professional advisors, before you are committed. If questions come up, they are raised in that period, not after closing. We coordinate with you and your advisors through due diligence and closing, so you know what is happening and what is needed from you at each step.
Businesses of all kinds
Buyers we work with look at all kinds of businesses — restaurants, retail, automotive, franchises, manufacturing, distribution, professional services, home services and trades, and many others.