This document outlines important information for potential buyers considering the purchase of a business. It covers several key areas of interest and due diligence for buyers.
The "Seller Bio" section resembles a LinkedIn profile, offering insights into the seller’s background, including educational and professional experiences, and any businesses they have currently or previously owned.
The "Executive Summary" serves as an elevator pitch, providing an overview of what the business does. It includes essential details about the business, such as its type, how long it has been operating, the industry it belongs to, its business model, location, and founders.
In the "Highlights" section, the document presents the business's strengths and potential areas for improvement. This includes outlining what makes the business robust and identifying growth opportunities.
Under "Operations," the document specifies what is required to maintain business operations, detailing tasks like customer support, and the associated time commitments in hours per week.
The "Customers" section details the nature of the business’s customers, breaking down information into areas like customer profiles, how customers are acquired, and strategies for customer retention.
The "Financials" section provides an analysis of the company’s financial health, including any trends in revenue or profit, with explanations of any anomalies or seasonal variations.
Finally, "Seller Notes" allows the business owner to discuss the business's development and highlight any critical aspects related to the sale. This framework ensures potential buyers are well-informed about the business.
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