It’s a Long Search for Aspiring Business Owners

Nick Vail’s search to buy an existing business approaches 15 months and he expects it to pay back soon.

Vail, 31, worked as an accountant for First Citizens Bank and then became a partner in Maritime Market, an independent grocer in Bald Head Island, North Carolina. When he assessed what he wanted most out of a career was financial freedom provided by a certain amount of cash flow, he also concluded that climbing the corporate ladder would not get him there any faster. Buying an existing business seemed a savvy way to meet his professional and lifestyle goals. However, after casting a relatively wide net from Boston to California’s Bay Area­­, Vail expresses frustration that he is not yet a business owner since starting his search 15 months ago.

Like nearly 50 percent of Americans, Vail says he dreams of owning a small business but he’s not a startup guy. “I have plenty of ideas for startups but I’d rather get involved in something less risky that allows me to do the things I want to do with my free time.” He is looking at businesses generating around $1.5 million in revenue with cash flow of around $500,000. For a business with that amount of cash flow, Vail expects an asking price around $1 million. Vail does most of his searching on the leading business listing website, bizbuysell, but complains about the lack of options and opaque company information tightly guarded by business brokers. Company valuations are also a common pain point in small business transactions. “Owners perceive their companies to be worth more than they are by market standards” said Vail.