Chapter 2: Find the right business to buy

The right business is rarely the first one you see. Most buyers look at many listings, talk to several sellers and say no many times before they find a business that matches their experience, budget and ambitions. This chapter is about where to find businesses, both those that are for sale and those that are not, and how to weed out the wrong ones quickly.

Describe your target business first

Write down what you are looking for before you start searching. It makes the search more precise, and it gives you a short, honest answer when sellers ask who you are. A good description includes:

• Industry and type: for example a webshop, SaaS, restaurant, trade business or manufacturing.
• Size: the revenue, profit and number of employees you can handle.
• Location: region or town, or whether the business can be run remotely or relocated.
• Budget and financing: how much you can pay yourself and what you expect to borrow.
• Your role: will you run operations, or should there be a manager who stays?
• Timeframe: when you can take over.

Businesses for sale on Sitavo

Start on the marketplace under businesses for sale. You can search in your own words, for example «trade business on Funen with 5–10 employees», and watch the search turn into filters you can adjust. The filters cover, among other things, category, region, price, revenue, profit, age, employees, stock and the option of seller financing. If you are looking in a particular area, you can start from businesses for sale by region and town. Save the listings you want to look at more closely, and compare up to three side by side. All the features are described in Find businesses for sale.

Good businesses often receive the most enquiries in the first few days. So save your search as a search alert, and you will be notified immediately, daily or weekly when a new listing matches. See Search alerts.

Wanted ad: let sellers find you

Many owners think about selling for a long time before they put up a listing. With a wanted ad you turn it around: you describe what you want to buy, and owners who match can reply to you. Create it under post a wanted ad.

• Where it is shown: publicly in the list of businesses wanted, and on each relevant category page under the «Buyers looking» tab.
• Anonymous: sellers see your description, budget and timeframe, but not your name until you share it yourself.
• Replies as a conversation: when a seller replies, the rest takes place in an ordinary conversation on Sitavo, where you can agree on an NDA and the next steps.
• Businesses that are not for sale too: owners without a listing can reply if your description fits their business.

Express interest in a business that is not for sale

If you already have a particular business in mind, you can use Express interest (Bank på) to show anonymous interest. You look the business up by name or CVR number and write briefly who you are, what you are looking for, your budget and your timeframe. If the business is already for sale on Sitavo, you are sent to the listing.

• The business is never contacted. Sitavo sends no email, letter or phone call.
• The owner sees the request when they claim the business on Sitavo, and can reply «yes, let’s talk» or «not now». You are notified either way.
• You are anonymous until you choose to share your name. The owner sees, for example, «Verified buyer» or «Anonymous buyer», your budget and your message.
• It is valid for 12 months. You can withdraw or extend it at any time.
• The owner can turn off requests, in which case no one can express interest in the business.

Off-market: businesses without a listing

A large share of ownership changes in Denmark happen without a public listing, for example to an employee, a supplier, a competitor or a buyer who made contact themselves. Finding them takes patience and tact:

• Your network: tell accountants, lawyers, bank advisers, suppliers and former colleagues what you are looking for. They often hear of owners who are thinking of stopping.
• Trade associations and business networks: this is where owners thinking about succession meet.
• Brokers and advisers: many have businesses that are only presented to buyers they know. Remember that the broker is usually hired by the seller.
• Owners you know: a direct, respectful approach can work, but accept a no. Express interest is a discreet alternative.
• Public data: the CVR register, annual accounts and The market today show, among other things, new owners, bankruptcies and annual reports, which can point to businesses in change.

Sort quickly: signs of a good candidate

When a business looks promising, message the seller with a short introduction of yourself, and sign an NDA if the listing requires one. See Contact a seller and NDAs when buying a business. The next step is to assess the price, which is the subject of chapter 3.