This document serves as a comprehensive guide for potential buyers to understand a business and evaluate its prospects. It starts with the Seller Bio, which essentially provides a professional background of the seller. This includes their educational history, past experiences, and any businesses they have been involved with, akin to an introductory LinkedIn profile or resume summary.
The Executive Summary follows, functioning as an elevator pitch by briefly describing what the business does. This section provides essential details such as the business type, age, industry, business model, location, and information about the founders.
The Highlights section presents an analysis of the business's strengths and potential opportunities. It underscores what makes the business attractive and identifies potential areas for improvement, dividing its focus into two sub-sections: strengths and opportunities.
Operations are detailed next, offering insight into the day-to-day requirements necessary to keep the business operational. This includes specifics about task volume (like the number of emails or calls for customer service) as well as the estimated weekly time commitment needed.
The Customers section delves into the nature of the business's clientele, aimed at helping potential buyers understand who their future customers might be. It covers customer profiles and segmentation, acquisition strategies, and retention methods.
The Financials section provides an overview of the business's revenue and profit trends, with comments on any anomalies such as seasonal fluctuations.
Lastly, the Seller Notes allow the owner to outline the business's evolution and highlight important elements of the sale that may not have been covered in other sections.
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 trusted network of industry-leading due diligence partners. They can provide in-depth analysis, identify hidden risks, and independently assess the value of the business. Learn More