Part 2: The process. (Buying a business)

From NDA to closing: here's exactly how the deal process works

Last week's post on buying businesses instead of starting them hit a nerve. I got multiple messages asking the same question: "This makes sense, but what does the actual process look like?" Today I'm walking you through the 120-day roadmap from finding a business to owning it.

Money Matters

Let's assume you've committed to acquiring a business and talked to an SBA loan specialist. You've found that $400,000 free cash flow company selling for $1.2 million we discussed last week. Now what? There's a specific sequence of steps that protects both you and the seller while ensuring you don't waste months on a deal that falls apart (and some still do).

The process breaks into four distinct phases: initial interest and information gathering, letter of intent and exclusivity, purchase agreement negotiation, and extended due diligence with banking. Each phase has specific documents, timelines, and objectives.

Here's what most people don't understand: you're not always buying assets, you're buying revenue streams. Many great businesses don't have heavy equipment or real estate - they have customers, employees, and repeatable income. That's exactly why SBA loans exist. Traditional banks want collateral they can touch. The SBA program recognizes that cash flow businesses create real value even without tangible assets.

The timeline matters because you're coordinating multiple moving parts: seller negotiations, legal documentation, banking approval, and your own due diligence. Rush any component and you risk killing the deal or buying a problem. Take too long and you lose exclusivity or banking commitment.