I am a business broker (selling small to mid-size companies); I have 5-years worth of experience in this field. What kind of business are you looking into?
There is not really a good one-size-fits all answer to your question. Here are some general tips:
- Most businesses are not passive. You buy the business to run it and be actively involved.
- A business broker or intermediary is helpful, if you can find a good one. Business owners are VERY skittish about talking to the general public about selling their business. Sometimes you can find really good deals by just knocking on doors, but this can be a bit of a needle in a haystack approach.
- Valuations vary widely depending upon the industry.
- Proof of ownership, free of liens, etc. is why you should hire an attorney to perform the closing to protect you.
If you can provide a few more details about what you're trying to accomplish, I can give a more detailed answer.
Bad idea, and you then become subject to federal securities offering laws (and state blue sky laws, to the extent applicable). No thanks!
Most small business transfers are asset sales, not stock sales.