THE SHORT ANSWER
Define the work you can perform, the full resources you can commit and the conditions an acquisition must meet. Apply that screen consistently to brokered, marketplace and direct opportunities. Advance a target when relevant evidence supports further review, and record unknowns separately from reasons to pass. No sourcing channel establishes business quality or lender eligibility.
Write a screen you can actually apply
State the operating role, location needs, service capabilities, investment resources and boundaries that matter to you. Include the support needed for duties outside your experience. A preference for an industry is different from the ability to supervise its work or obtain its required permissions.
SBA connects business-purchase review to investment, skills and the operating landscape.
(SBA: evaluating an existing business purchase)Ask which criteria are firm constraints and which can be resolved through acceptable cost or support. Avoid rejecting a business on an arbitrary percentage or a seller’s age; identify the issue and the evidence needed to assess it.
Use comparable evidence across sourcing channels
Record where the opportunity came from, the date and what has actually been provided. Off-market access does not establish quality, exclusivity or a realistic asking price. A public listing is an introduction to investigate rather than an underwriting conclusion.
| Screening question | Shortlist record |
|---|---|
| Operating fit | Required duties, qualifications and available support |
| Financial basis | Earnings definition, periods, adjustments and missing evidence |
| Rights and obligations | Included assets, lease, contracts and open permissions |
| Full resources | Purchase uses, operating cash and funding conditions |
| Disposition | Advance, hold for specified evidence, or pass with reason |
Keep dates and reasons so the shortlist can change when evidence changes.
Limit disclosure to the current decision
Agree what information is appropriate before requesting private records. A preliminary fit check can start with limited descriptions and financial summaries; identity and detailed records should follow the approved disclosure process. Respect the seller’s confidentiality and actual agreement terms.
FTC guidance supports collecting only needed information and limiting access.
(FTC: Start with Security business guidance)Use authorized channels and reviewers. Do not collect employee or customer personal information merely to populate a lead database. A signed NDA does not by itself authorize every proposed use of all records.
Advance with a defined next question
Identify the next decision, the required evidence, reviewer and proposed cost. Use the diligence evidence map when a target merits deeper review. Obtain current lender-specific feedback before relying on a proposed financing structure.
This worksheet sets no fixed number of targets, response rate, screening duration, loan percentage or earnings coverage threshold. Listing language cannot prove transferable cash flow or available financing. A disciplined shortlist records what you know, why the target fits and what must be resolved before further commitment.
Buyer questions
Are off-market businesses necessarily better?
No. Evaluate the actual business and evidence independently of the sourcing channel.
Does asking price prove a financeable value?
No. Review supported earnings, full uses, actual loan terms and lender requirements.
Should missing information be treated as a failure?
Record the unknown and decide whether it can be resolved at acceptable cost before advancing.
Sources and review scope
Source review completed . The sources below support the identified concepts or rules; they do not validate hypothetical amounts or a valuation of your business.
- SBA: evaluating an existing business purchase
Current consolidated planning page, acquisition sections: investment and operating costs, personal fit, infrastructure, investigation and professional document review. Not proof of off-market availability, superior pricing or financing approval. No franchise-specific conclusions taken from this source.
- FTC: Start with Security business guidance
General security practices illustrated through FTC settlement allegations, not findings about this business, a certification, or a complete privacy-law assessment.
Confirm tax, legal, accounting and lending applications with the relevant professionals. Historical market observations describe the stated period and reported sample.
This is educational material. Industry figures and program rules can change; check the original sources and your advisors before applying them to a transaction. Calculator scenarios are not appraisals, lending decisions, or offers.
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