Buying your first business is exciting and overwhelming in equal measure. The process involves financial analysis, legal review, lender qualification, due diligence, negotiation, and closing coordination — all simultaneously, often under time pressure. A checklist keeps you organized and ensures nothing critical is missed.
Before Making an Offer
Complete these steps before making any offer: get SBA pre-qualification to understand your financing capacity, define your acquisition criteria in writing, review at least 3 years of seller financial statements, prepare a list of clarifying questions about the business, verify the lease situation and remaining term, research the local competitive landscape, and consult with a business attorney to understand the LOI process.
After Signing the LOI
During the due diligence period: engage your attorney for legal document review, engage your accountant for financial verification, order a commercial appraisal if required by your lender, review all major contracts (customer, supplier, equipment leases), verify all licenses and permits are current and transferable, conduct background research on the seller and business history, and schedule a visit to the business during normal operating hours.
At closing, ensure: the transfer of all licenses and permits is confirmed or pending, the lease assignment documentation is executed, all employees are notified per the agreed transition plan, bank accounts and payment processing are transferred, and insurance coverage is in force from day one under your name. The first 90 days post-close are the most critical period — plan your transition carefully with the seller before closing day.