Finding businesses for sale, including off-market opportunities

Many buyers assume that every business for sale is advertised somewhere online. In practice, listings show only part of the market. Some of the better opportunities are sold quietly through networks, or to buyers who approached the owner before a sale was ever planned. A good search uses both channels.

Start with your criteria

Before you look anywhere, be clear about what you want. Industry, size, location, price and role all narrow the field. Without criteria, you will waste time on listings that were never a fit, and the people you speak to will not know what to send you. Our guide to setting acquisition criteria explains how.

On-market: advertised businesses

Online marketplaces

Australia has several national and state-focused websites that list businesses for sale. They are a useful starting point to understand what is on the market, typical asking prices and how businesses in your chosen industry are described.

Keep in mind:

listings are written to sell, so treat claimed profits as a starting point, not a fact
asking prices are a seller's opening position, not a valuation
popular listings attract many enquiries, so be ready to move quickly with a clear profile of yourself

Set up saved searches and alerts so you see new listings early.

Business brokers

Brokers act for sellers. They prepare information memoranda, screen buyers and manage the sale process. Some specialise by industry or region. Many are members of industry associations. Licensing rules for people who sell businesses differ from state to state, so it is worth checking what applies where the business is located.

To work well with brokers:

Introduce yourself properly. Send your one-page buyer profile and explain your capital and timeline.
Respond promptly. Brokers favour buyers who read material, ask sensible questions and give clear feedback.
Sign confidentiality agreements. You will usually need to sign one before you see detailed information. Read them; some contain restrictions on approaching staff or customers.
Remember who they work for. A broker's job is to get the best outcome for the seller. Do your own analysis.

Industry and franchise sales

Some industries have their own sales channels, such as franchise resales handled by the franchisor, or practice sales in professional services. If your criteria point to a particular sector, find out how businesses in it usually change hands.

Off-market: before the business is advertised

Off-market deals are businesses bought without a public sale process. They can be less competitive, and the conversation is often more relaxed because the owner has not yet committed to selling. They also take more effort to find.

Direct approaches to owners

The most direct method is to identify businesses that match your criteria and contact the owners. Sources for building a list include industry directories, trade association member lists, local business networks, and searches of the Australian Business Register through ABN Lookup to confirm details.

A good first approach is short, respectful and specific:

who you are and what experience you bring
why you are interested in their business or industry
that you are looking to buy and run a business long term, not strip it
an invitation to a confidential conversation, with no pressure

Many owners will say no, or not yet. That is normal. Keep a record and follow up politely after a sensible period. An owner who is not ready today may be ready in a year or two.

Advisers and professional networks

Accountants, lawyers and financial advisers often know which clients are thinking about retirement or succession. Share your buyer profile with them. They will only introduce you if they believe you are credible and will treat their client well, so be clear and professional.

Industry relationships

Suppliers, distributors and industry bodies hear about owners thinking of selling. Attending trade events and building relationships in your target industry can surface opportunities that never reach a broker.

Your own network

Tell people you trust what you are looking for. Former colleagues, customers and friends who run businesses can all be a source of introductions.

Weighing on-market and off-market

Neither channel is better in every case.

On-market businesses usually come with prepared information, a seller who has decided to sell, and a clear process. Competition from other buyers can push prices up.

Off-market businesses may face less competition, but information is often less organised, the owner may be uncertain, and the process can take longer. You may need to do more work to understand the numbers, because nobody has packaged them yet.

Many successful buyers run both at once: watching listings and broker networks while building a pipeline of direct conversations.

Keep a pipeline

Treat the search like a sales process. Keep a simple record of every business you look at, with the source, the date, key numbers, your assessment and the next step. This helps you:

see how many opportunities you need to review to find one worth pursuing
follow up at the right time
spot patterns in what you keep rejecting, which may mean your criteria need adjusting

Screening quickly

When an opportunity appears, a quick first screen saves time. Ask:

Does it fit my criteria on industry, size, location and price?
Is the profit history consistent, or does it depend on one strong year?
Is the business too reliant on the owner or a single customer?
Is there a lease, and how long is left on it?
Is the reason for sale believable?

If the answers are promising, request more information and begin to look at earnings properly. Our article on SDE vs EBITDA explains how to read the profit figures sellers present.

Most of the market is not on a website. The buyers who find good businesses tend to be the ones who make themselves known and stay in touch.

Confidentiality cuts both ways

Owners worry that word of a sale will unsettle staff, customers and competitors. Respect that. Do not approach staff, customers or suppliers without the owner's agreement, and keep what you learn to yourself. Your reputation in a small market is part of your search strategy.

How we can help

Kainos Consultants helps buyers screen opportunities, read the numbers behind a listing, and prepare credible approaches to owners off-market. Find out more about our business sales and purchases service, or contact us to discuss your search.

This article is general information only and does not take into account your circumstances. Speak to a qualified adviser before acting on it.