You can find a business to buy in six main places: online marketplaces, business brokers, merger advisors (firms that sell larger companies), direct outreach to owners who have not listed, referrals, and franchise resales. The real trade-off is visibility against competition: a listed business is easy for you to find and just as easy for every other buyer. This primer is for buyers, including entrepreneurship through acquisition (ETA) searchers, deciding where to spend their sourcing hours.
The short answer
- Marketplaces and brokers show you businesses that are already for sale, and you will compete with other buyers for them. Direct outreach finds owners who have not listed, and takes more time and persistence.
- Brokers and advisors mainly work for the seller. Ask every one of them who they represent and how they are paid.
- We found no neutral source that measures what share of small deals closes through each channel, so treat any claimed share with skepticism.
- Judge any lead the same way, whatever the source: why they are selling, how reliable the financials are and whether the business depends on the owner.
- Ask for insurance records early. Loss history and policies tell you things the listing does not.
Where do buyers actually find businesses for sale?
Buyers find businesses through six main channels, and most use more than one. The table describes each channel neutrally. It is not a ranking, and the right choice depends on your situation.
| Channel | How it works | Upsides | Watch-outs |
|---|---|---|---|
| Online marketplaces | Owners and brokers post listings with summary financials, and buyers sign a nondisclosure agreement (NDA) to see more | Wide choice, quick to browse, many industries and locations | Competition, summary numbers prepared by the seller's side, listings that never sell |
| Business brokers | A broker represents a seller, markets the business and screens buyers | Prepared packages, access to owners, support through closing | The broker usually works for the seller, the seller usually pays the fee, and the fee structure can shape price expectations. Confirm who the broker represents in writing |
| Investment bankers and merger advisors | An advisor runs a structured process and contacts a list of buyers for a larger company | Organized information, serious sellers | Competitive processes, usually larger deals, buyers may need to show funding |
| Direct outreach | You write to or call owners of businesses that match your criteria | Fewer competing bids, you set the conversation | Slow, many owners say no or are not ready, you build the list yourself |
| Referrals and industry contacts | Accountants, attorneys, lenders, suppliers and trade associations know owners thinking of selling | Trust from an introduction, early notice of retirements | Unpredictable timing, you need a network and a clear pitch |
| Franchise resales | An existing franchisee sells with the franchisor's involvement | A known brand and operating system | Franchisor approval and fees, rules in the franchise agreement. See buying a franchise resale |
For franchise resales, the U.S. Small Business Administration publishes a franchise directory of brands eligible for its financing, and says a listing is not an endorsement of the brand.
How do marketplaces and business brokers work for a buyer?
Marketplaces are the most visible channel. One large operator's third quarter 2026 report counted 2,132 closed small business sales, with a median sale price of $350,000. Brokers report those sales voluntarily, so treat it as a sense of scale, not a measure of the whole market.
A business broker typically values the business, markets it and screens buyers for the seller, and the seller usually pays. Ask every broker who they represent and how they are paid. That depends on the written listing agreement and on state agency rules, which vary, so ask for the answer in writing. Also confirm the broker's license on your state insurance or real estate regulator's lookup, if your state requires one. The packages are written for the seller, so your accountant, not the package, tests the numbers. For fees, agency and licensing in detail, see business broker vs direct deal.
What about owners who have not listed their business?
Direct outreach means finding owners yourself by industry, size and location, then writing, calling or visiting. Calder Capital, an advisory firm summarizing the 2026 Stanford search fund study, says proprietary, off-market opportunities have become increasingly valuable as more buyers chase the same marketed businesses. It is an advisor's view and describes search funds, not every buyer.
- Write down your criteria: industry, size, location and what you will not buy.
- Build a list: state business registries, trade association member directories, chamber of commerce lists, supplier and customer introductions.
- Send a short, honest letter or call: who you are, what you are looking for, and that you will keep it confidential.
- Track every contact and follow up. Many owners will say not now, and some say yes a year later.
Plan for a long road. Stanford's 2026 study says about half of recently launched investor-backed search funds have acquired a company. That figure describes search funds buying much larger companies, and it is not a forecast for a first small purchase.
Referrals work alongside outreach. Accountants, attorneys, lenders, insurance brokers, suppliers and trade associations often know which owners are tired, retiring or getting offers. Succession situations (an owner near retirement with no successor, or a partner wanting out) are common reasons a business changes hands. Ask your attorney about marketing rules for calls, texts and email before you start.
Which channel fits which buyer?
Match the channel to your constraints, and expect to use more than one. This is a decision guide, not a ranking.
| Your situation | Channels that tend to fit | Why |
|---|---|---|
| First-time buyer, limited time, planning a loan from the U.S. Small Business Administration (SBA). See how SBA 7(a) acquisition loans work | Marketplaces and brokers, plus a few referrals | Listings give you a place to start and an early view of the numbers, though an SBA lender will still obtain an independent valuation for its own file and check the seller's tax returns against IRS transcripts |
| Searcher with investors and a target industry. See how search funds work | Direct outreach, referrals and advisors, with brokers as a supplement | You need a pipeline of businesses that fit a thesis, and investors expect disciplined sourcing |
| Existing owner doing an add-on | Referrals, direct outreach to competitors and suppliers' contacts | You know the industry and who is in it |
| Buyer who wants a proven brand and system | Franchise resales | The franchisor's approval and training are part of the deal |
| Buyer with a larger funding source | Investment bankers and advisors | Advisors run processes for larger companies |
A hypothetical example. A first-time buyer sets aside ten hours a week. She spends three hours browsing marketplaces and calling brokers, four writing to owners of companies in one industry within driving distance, and three meeting an accountant, an attorney and a banker who know local owners. Over a few months, she signs a handful of nondisclosure agreements and finds the most promising lead through a referral. These numbers are illustrative only and are not typical conversion rates.
How do you screen a lead quickly, whatever the source?
Every source needs the same first pass. A business that looks good in a listing has to survive the same questions as one an acquaintance recommends.
- Why is the owner selling, and why now? See questions to ask a seller before you buy.
- Do the financials hold together? After an NDA, ask for several years of profit and loss statements, tax returns and bank statements. Compare them with each other.
- Does the business depend on the owner? Customers, licenses and relationships tied to one person are a risk you will price.
- Is the asking price in a sensible range? Published multiples are a sanity check, not a price. See how small businesses are valued.
- Are there warning signs? See red flags when buying a business.
A listing is marketing. It has summary financials and few details about claims, contracts, licenses or staff. Treat it as the start of the question list.
Where does insurance come in while you are still looking?
Insurance records are some of the first documents worth asking for, because they are factual and come from third parties. Carrier turnaround varies, so ask early. Once you have a serious lead and an NDA, ask for these:
- The basics: a schedule of policies, loss runs (the carrier's record of claims) for several years and any open claims. A quick look can show claim frequency or open claims with large reserves (the carrier's estimate of what it will pay).
- What loss runs do not show: they come one carrier and one coverage line at a time, show claims reported as of a stated date, and do not show incidents the seller paid directly, so ask for every carrier and line.
- Why carriers changed: a change of carriers can mean a non-renewal or simply a broker remarketing for price, so ask why.
If a franchise resale is on your list, read the franchise agreement's insurance requirements before you commit. They can set minimum coverage and add the franchisor as an insured.
Premium is also a line in the earnings you are buying, and it may not be what you will pay once the business is in your name. Get indications before your model and loan are final. A quote is not bound coverage, but it is better than a guess. See budgeting insurance in an acquisition model, the insurance checklist for buying a business and the due diligence checklist.
Send what you get to your broker early. Morrow can review the policies and loss runs a seller shares and request quotes, and a quote is not bound coverage.
Keep reading
- Business Broker vs Buying Directly From the Owner
- Questions to Ask a Seller Before You Buy a Business
- Red Flags When Buying a Business
- How Small Businesses Are Valued: SDE, EBITDA and Multiples
- Due Diligence Checklist for Buying a Small Business
- All guides for new business owners
Frequently asked questions
Where is the best place to find a business to buy?
There is no single best place. The right mix depends on your time, budget and industry focus, and most buyers use several channels. The decision guide above shows which tend to fit which buyer.
Do business brokers work for the buyer or the seller?
Usually the seller. A broker is typically hired by the owner and paid mainly by a success fee at closing. Ask who the broker represents in your deal, because agency rules and listing agreements vary by state.
How long does it take to find a business to buy?
We found no reliable timeline for small business deals. The best-documented figure is for investor-backed search funds: Stanford's 2026 study says they typically take around 20 months from the start of a search to an acquisition, though those funds buy much larger companies. Plan on months, and start your lender and insurance conversations early.
Can I just call a business owner who has not listed the business?
Yes, and many buyers do. Expect many owners to say no or not yet. Be clear about who you are, keep early conversations confidential and ask your attorney about rules for calls, texts and email before you start.
Is it better to buy a listed business or approach an owner directly?
Each has trade-offs. A listed business is easy to find and may have prepared financials, but other buyers can see it too. Direct outreach can mean less competition, but it takes more time and many owners are not ready to sell.
What documents should I ask for first from a seller?
After an NDA, ask for several years of financial statements and tax returns, a customer breakdown and a schedule of insurance policies with loss runs. Then ask for contracts, the lease, licenses and the employee list.
References
- CoStar Group: BizBuySell Releases Q3 2026 Insight Report (October 20, 2026)
- Morgan & Westfield: Acquired, Ch. 11, M&A Advisors (sell-side advisory firm, 2026)
- Calder Capital: Acquisition Search Is Getting Harder, Takeaways From Stanford's 2026 Search Fund Study
- Stanford Graduate School of Business: Search Funds Keep Offering a Proven Path to Ownership (July 13, 2026)
- U.S. Small Business Administration: Buy an existing business or franchise
Just bought a business? Get your insurance reviewed.
Send Morrow the declarations pages, loss runs and key contracts you inherited. Morrow can review them against the business you bought, flag gaps and request quotes where it makes sense. Any new terms depend on carrier underwriting.
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This article is general information, not legal, tax or financial advice, and not a coverage determination. Coverage depends on the actual policy wording, carrier underwriting, your purchase agreement and your contracts. Ask your attorney and accountant about deal and legal questions.