The document outlines key sections to provide a comprehensive overview for potential buyers of a business. The first section, "Seller Bio," should capture the seller's professional background, akin to a LinkedIn profile or resume, highlighting educational credentials, past business experiences, and current or previously owned ventures. The "Executive Summary" serves as an elevator pitch, succinctly describing the business's nature, encompassing its type, longevity, industry, business model, geographic location, and founding members.
The "Highlights" section emphasizes the strengths and opportunities within the business, outlining what makes it an attractive proposition and potential areas for improvement. This section is divided into "Strengths" and "Opportunities" subsections. In "Operations," the document should detail the essential tasks required to maintain business continuity, specifying the volume of tasks like emails or customer calls and the weekly time commitment required.
The "Customers" section offers insights into the business's clientele, categorized into "Customer profile & segmentation," "Customer acquisition," and "Customer retention," helping potential buyers understand their future customer base. "Financials" should provide a clear depiction of the business's financial health, explicating any trends in revenue or profit, including unusual patterns like seasonality. Lastly, the "Seller Notes" section is for the current owner to document the business's development and other pertinent elements related to the sale. This structured guide aims to equip potential buyers with essential knowledge to assess the business's value and operational dynamics.
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