This document serves as a comprehensive guide for potential buyers to evaluate a business. It begins with the Seller Bio, a section designed to offer insights into the seller's background, similar to a LinkedIn profile introduction. This includes their educational background, past experiences, and any businesses they have previously or currently owned. The Executive Summary follows, providing a concise description of the business, outlining its type, age, industry, business model, and other essential details such as location and founders.
The Highlights section focuses on the business's strengths and opportunities. It clarifies what makes the business viable and identifies areas for potential improvement. This is divided into strengths and opportunities subsections. The Operations section lays out the necessary tasks required to maintain business operations, specifying the volume of tasks like customer support interactions and the estimated weekly time commitment.
In the Customers section, information about the business's clientele is detailed, helping prospective buyers understand the customer base. It includes subsections on customer profiles, acquisition strategies, and retention practices. The Financials section provides a clear depiction of the business's financial health, explaining any variations in revenue or profit, and addressing financial irregularities, such as seasonality. Lastly, the Seller Notes offer the seller an opportunity to explain the business's evolution and highlight any critical aspects of the sale, providing potential buyers with deeper insights into the business’s journey and future potential.
Flippa’s platform is free for buyers. Here are our tips for first-time buyers:
Before making an offer
1. Look for verified sellers. Sellers should verify their email, phone, and government ID. When a seller has completed all verifications, we identify them with a checkmark like this:
2. Review financials. Financials are seller-provided inputs. Always ask for verified financials. Ask for a tax return or request access to their dashboard. if it’s an ecommerce store get a transaction report.
3. Review traffic. Sellers can grant you access to Google Analytics. Ask for read-only access to verify site traffic.
4. Schedule a call. Communication is key. The best way to find out more is to speak directly with the seller. For your protection, keep all communication within Flippa.
5. Make the offer on Flippa. We’re here to help. Flippa does not charge buyers and by making an offer on Flippa you’ll get access to our post-sales support team.
1. Agreements & Contracts.
Connect with a US-based lawyer or purchase asset-specific template legal documents via Flippa Legal.
2. Conduct Due Diligence.
You can conduct this yourself, or use our new official verification and assessment service. We provide a deep analysis, identify hidden risks, and independently assess the value of the business. Packages start at $1,000. Learn More