Searching: How to find the right SMB to acquire

So, you’ve decided to buy a small business. Great move. Now comes the fun (and sometimes frustrating) part—actually finding one.

Here’s the deal: searching for a business to buy isn’t like scrolling through Zillow or Indeed. Odds are, you won't open up BizBuySell and see your "dream" business at the right price within 10 minutes of scrolling for the first time. Most listed businesses are overpriced, underwhelming, or both. And the really good ones? They don’t stay on the market long.

That said, you don’t have to quit your job to start searching. Some people go all-in and treat the search like a full-time job, pounding the pavement and digging through CIMs every day. Others do it part-time while keeping their W2 paycheck, taking a slower but still effective approach. Both work—it just depends on your timeline and risk tolerance.

Here’s what we’ll cover:

• Where to actually find businesses for sale (beyond BizBuySell)
• How to tell if a deal is worth pursuing before wasting weeks on it
• How to get business owners to actually respond to you
• The pros and cons of different search methods
• Red flags to watch out for

Whether you’re going full-speed or just dipping a toe in, the key to finding a great deal is consistency. Let’s get into it.

1. Full-Time vs. Part-Time Searching: Which One is Right for You?

Some people jump in full-time, dedicating all their energy to finding a business ASAP. Others do it on the side while keeping a paycheck. Here’s how they compare:

👉 Who should go full-time? If you’ve got savings, a severance package / parachute out of W2 land, or just want to get a deal done fast, go all-in.

👉 Who should go part-time? If you need financial stability or aren’t in a rush, keep your W2 and start searching on nights and weekends

Either way, searching requires discipline. If you’re part-time, you need to carve out consistent time every week to make real progress. If you’re full-time, you need to treat it like a job—because it is.

2. Where to Find Businesses for Sale

On-Market Deals (Easy to Find, Harder to Win)

These are businesses listed publicly—think of it like the MLS for business buying. The other important element here is these are sellers who are READY to sell (for the most part). They are ready to get a check and walk away. If they have a broker, they have someone helping them through the process too so there isn't tons of educating required. Here's where you can find deals:

• BizBuySell – The biggest marketplace; if I had to pick one and only one source this would be it. There are tons of lemons in the mix, but once you learn how to assess good vs. bad it can be fairly easy to spot the promising ones. People joke about finding businesses here, but there are truly great opportunities.
  • Use filters to help you out, namely date posted and you can focus on the fresh ones (last 3/7 days) and setup email alerts too.
• Baton Market - this is a newcomer on the scene and you NEED to get on here and check out their listings (they don't usually cross post to BizBuySell). They are a modern take on brokerage slash marketplace. Everything they have is quality and has already been vetted and they have streamlined NDA processes with data rooms behind the deals.
  • More recently they introduced "private listings" which are essentially off market deals where sellers may be open to a chat if you say the right things.
• Axial - this is where the big kids play. Go here for the "lower middle market" deals that M&A advisors, intermediaries, and investment banks won't put on BizBuySell for everyone and there uncle to see. Think $1m-$5m EBITDA deals on average, though they go lower and higher.
  • You need to signup (no fee), put in your criteria, and then you'll get teasers on deals which fit. It's like a members only version of BizBuySell but the catch is you pay a success fee to Axial if you source the deal through them. You can submit for exceptions where you can prove you already heard of a deal elsewhere but it's a nuisance and they know it.
  • I have mixed feelings here... you see great stuff but often if you had the right feelers out you would see the same deals in your inbox (from broker emails), on BizBuySell, and even sometimes in LinkedIn posts.
  • Pro Tip: if you look at a couple deals here and there you can spot the brokers who list all the time on Axial. Look them up and get on their radar / mailing lists to get away from Axial reliance.
• Brokers’ Websites – I find most brokers do put their stuff up on BizBuySell, definitely more at the "main street" level businesses. Nonetheless, you should still get on broker mailing lists where you can as sometimes they list it there before going broader on it.

• LoopNet – Really known in the real estate world for commercial real estate but you can also search for businesses. They are owned by CoStar, just like BizBuySell, so in my experience you won't see anything you wouldn't see on BizBuySell first. The exception, if you're willing to go sifting through the rubble, is spotting real estate deals with an underlying business where the seller is planning to just close the doors. You could in theory swoop in and buy the biz on the cheap + real estate and leverage an SBA 7A loan with a longer amortization schedule (more on that later).
• Other marketplaces as we flag here

Off-Market Deals (Harder to Find, But Where the Best Deals Are)

Some of the best businesses never hit the market. You have to go find them but it takes way more work and the seller could change their mind at any moment. You have to bear in mind they may not mentally be ready to sell, and getting cold feet at the 11th hour isn't unheard of. That said, you dramatically lower your competition if you can source your own deals. Here’s how:

• Direct Outreach (Cold Email, Calls, and Door Knocking)
  • Find businesses that fit your criteria (Google, LinkedIn, local directories).
  • Email the owner directly (short, professional, and to the point) or better yet, show up in person if you can.
  • Follow up. A lot. Most owners won’t reply on the first email.
• Rejigg - this is like a marketplace but nothing is formally brokered or listed. So you find some great stuff but also some unrealistic expectations. You really have to thoughtfully sift through but there are real finds if you know what you're looking for. No fee to get started either.

If you do this right, you’ll get leads before they ever hit the market.

Networking & Referrals

Your next deal might come from a conversation, not a listing site.

• Join local business groups (Chamber of Commerce, industry associations).
• Tell people you’re looking to buy a business. You’d be surprised how often someone knows someone.
• Talk to accountants, attorneys, and wealth managers. They know business owners planning to sell before anyone else.

📌 Pro Tip: Ask for introductions, not deals. People are more likely to introduce you to an owner than tell you about a sale upfront.

3. How to Evaluate a Business Quickly

You don’t have time to chase every deal. Here’s how to filter out the bad ones fast:

1. Key Areas to Check

• Revenue & EBITDA – Is it profitable? What’s the margin? Most businesses in Search land trade for 2-4.5x EBITDA depending on how strong the fundamentals are
• Owner Involvement – If the owner does everything, replacing them will be hard. That doesn't mean write it off, but be aware if you are buying yourself a job. The goal should be to work on the business, not in it every hour of every day
• Customer Concentration – If a few customers make up 50%+ of revenue, that’s a risk when one walks away and suddenly you're missing a big piece of your topline. There are ways to mitigate this by structuring the deal accordingly.
• Growth Trends – Declining sales = 🚩 but it doesn't have to be a deal killer if you can make sense of why and feel there's a path to stabilizing things. If nothing else, it should make for a better buy price up front.
• Employee Stability – High turnover is a problem. If people don't want to work there, you may not want to own it, though if cultural you could potentially fix that yourself

2. Quick Red Flags That Should Make You Walk Away

❌ “Cash business, no records” – Nope. No bank will underwrite it and how can you trust a seller who is likely leveraging all cash to smudge their tax returns.

❌ “Trust me, the numbers are good” – Show me the tax returns. Pay for what they account for.

❌ “Seller in a huge rush” – Why?

❌ “Family business where the entire family works there” – Are they all leaving? That is a lot of shoes to fill post-close. They may not be considering replacement costs for them at market rate salaries either.

Good deals can withstand scrutiny. If a seller won’t answer basic questions, move on.

How to Get Owners to Actually Respond

Most sellers aren’t actively trying to sell, and many are skeptical. Here’s how to get them to take you seriously:

Make It About Them, Not You

• Acknowledge what they’ve built.
• Don’t come off as a private equity firm. Most small business owners don’t want to sell to “suits.” You're a girl/guy looking to take the helm of a small business to better your family and continue to take care of their team and customers.
• Offer a flexible transition. Some owners don’t want to walk away immediately. It's nice to get a solid transition period, but don't make it too long.

Follow Up (A Lot)

• Most business owners are busy.
• One email isn’t enough. Send a follow-up in a week, then another a few weeks later.
• Use multiple channels. Call, email, even send a letter.

4. Final Thoughts: Searching is a Marathon, Not a Sprint

Finding the right SMB takes time. Whether you’re doing it full-time or part-time, the key is consistency and you'll need to find more than one most likely as deals often fall apart even after you get them under LOI (next section).

• If you’re looking part-time: Set a weekly schedule for reviewing deals and reaching out.
• If you’re full-time: Treat it like your job. Aim for 20+ new contacts per week.

The best deals don’t go to the person who searches the hardest for a month—they go to the person who sticks with it for the long haul and acts quickest.

Now, get out there and start looking. Your future business isn’t going to find itself.