Value it and fund the purchase

Two questions decide whether a deal is smart: what's the business really worth, and how will you pay for it? Small businesses usually sell for a multiple of their real earnings, and there's specific financing — including SBA loans built for acquisitions — to help you buy one. Get both right and you buy a paycheck; get them wrong and you buy a burden.

Do this

1. Learn the basic valuation: most small businesses sell for a multiple of SDE (Seller's Discretionary Earnings — the true owner benefit), often ~2–4×.
2. Don't overpay for 'potential' — value it on what it earns now, not what the seller swears it could.
3. Fund it: SBA 7(a) loans can finance business acquisitions; seller financing (the seller carries part of the price) is common and shows their confidence.
4. Run your readiness first: Bizer's Capital tool (/capital) scores you for an acquisition loan and lines up lenders.

Valuing and funding a purchase

WHAT'S IT WORTH? Most small businesses: a MULTIPLE of SDE (Seller's Discretionary Earnings = profit + owner's salary + owner perks). Common range ~2–4×, depending on industry, stability, and how much runs without the owner. Value what it earns NOW — never pay full price for "potential."

HOW TO PAY FOR IT • SBA 7(a) loan — can finance a business acquisition (banks like the proven track record). Usually needs a down payment. • Seller financing — the seller carries part of the price, paid over time. Common, and a good sign they believe in the business. • Your cash + investors for the rest.

Get loan-ready first: Bizer's Capital tool (/capital) scores you and matches acquisition lenders. A SCORE mentor can sanity-check the deal free.