Questions to ask when buying a business, and the ones listings skip
Most question lists start with the financials. The listing already gave you a number there. It left out the owner's time, so ask that first.
By Josh Elberg, founder of Palavir · Published
Palavir is a Michigan data and automation consultancy.
Short answer
Start with the questions a listing leaves out. Only 9% of 3,928 US listings say how many hours the owner works, and 37% are rated high on owner dependence by our model. Ask about the owner's time first, then the books, then customers and staff, then the deal terms.
9%
of 3,928 US listings state the owner's weekly hours
37%
of US listings are rated high on owner dependence (a model score from the text)
16%
of US listings mention seller financing
89%
state profit that covers 1.25x the payments on our assumed loan
Why the first questions are the ones listings skip
A listing gives an asking price and a profit figure, both stated by the seller. Our scan of 3,928 US listings shows how little else it gives. Only 9% say how many hours the owner works, and where they do, the middle is 10 hours a week. Those are probably the easier businesses. For the rest, the hours are a blank, and the blank is where a buyer's year goes.
The money looks better in the listings than the time does. 89% of US listings state profit that covers 1.25 times the payments on an assumed loan of 90% of the asking price, over 10 years at 10% a year. That is our own rough test, not a lender's, and the profit is the seller's figure. It often includes the owner's pay. A business can pass that test and still need you every day.
The owner's time
This is the group listings skip most. Only 9% of US listings state the owner's weekly hours, and 37% are rated high on owner dependence.
- How many hours a week do you work, and what do you do in them? A listing that says nothing could mean 5 hours or 50. Ask for it task by task.
- What would stop if you took a month off? The answer shows what only the owner can do. That is the part you will have to do or pay for.
- Who handles the customers who ask for you by name? Relationships that live with the owner leave with the owner.
- Which licenses, permits or certifications are in your name? Some do not transfer. Find out before you bid, not after.
The money and the books
Profit in a listing is the seller's own figure. It often includes the owner's pay, so a replacement for the owner comes out of it.
- What is in the profit figure, line by line? Ask which add-backs make up the gap between tax profit and the number in the listing, and ask for proof of each.
- Can I see tax returns and monthly statements for the last three years? Returns show what was reported. Monthly statements show swings, seasons and a bad last quarter.
- Do the bank deposits match the reported sales? It is the quickest check that the books describe real money.
- What happened to sales and profit in the last 12 months compared with the year before? A price based on a peak year is a price for a business you may not get.
- What debts, liens, back taxes or unpaid bills come with it? Ask your attorney how they are handled in the sale, and who pays.
Customers and staff
These questions show whether the business runs without the person selling it.
- How much of the sales comes from your top five customers? One customer leaving can erase a year of profit.
- How do new customers find you, and what does it cost? If the owner's network or one ad account brings the sales, that is a risk you are buying.
- Who are the key employees, how long have they stayed, and what are they paid? Ask whether they know the business is for sale, and whether any are likely to leave.
- Which suppliers can change terms or drop you? A single supplier with no contract can reset your costs.
The deal terms
Seller financing is mentioned in 16% of US listings, so most sellers will not volunteer a note. Ask.
- Why are you selling, and why now? Listen for the reason and check it against the answers above. A weak story is a flag.
- Will you carry part of the price as a seller note, and on what terms? A note ties the seller's money to the business doing well. The seller financing article shows how it works with an SBA loan.
- What is included: equipment, stock, lease, website, phone numbers, accounts? Write the list into the contract. Missing assets are expensive to replace.
- How long will you stay to train me, and will you sign a non-compete? Time with the seller is the cheapest way to learn the unwritten parts of the business.
- Does the lease transfer, and for how long? A location business without a lease you can keep is a different business.
Red flags to watch for in the answers
- The seller will not give weekly hours, or gives a number with no tasks behind it.
- Profit cannot be traced to tax returns and bank deposits.
- The add-backs are large and have no paperwork.
- One customer, one supplier or one ad account carries most of the business.
- Sales fell in the last year and the story changes when you ask.
- The key licenses, staff or lease cannot move to you.
Have an accountant look at the books and an attorney look at the contract. This page does not replace either.
What to do with the answers
If the hours are high and you want a business that runs without you, read what semi-absentee listings really say. If you are close to buying, the plan for the first three months is in the first 90 days. To see which of these questions a specific listing leaves open, paste it into the free business listing check.
What this data cannot tell you
- These are asking prices, not the prices businesses sold for.
- Profit is the seller's own figure. It often includes the owner's pay, so someone still has to do that work.
- It is a snapshot of listings from October 2026, not a survey of all businesses.
- The shares count US listings whose text states the item. A blank means the listing is silent, not that the answer is bad.
- Owner dependence is a model score read from listing text. It can be wrong.
- The loan test assumes 90% borrowed over 10 years at 10%. It is our assumption, not a lender quote.
- The question list is general advice, not drawn from our data.
Questions people ask
What questions should you ask when buying a business?
Start with the owner's time: weekly hours, what stops if they leave, and which customers and licenses depend on them. Only 9% of 3,928 US listings state the owner's hours, and 37% are rated high on owner dependence. Then ask about the books, customers and staff, and the deal terms.
What are the red flags when buying a business?
Common ones are a seller who will not give weekly hours or tax returns, profit that cannot be traced to bank deposits, one customer or supplier behind most of the sales, a falling last year, and a reason for selling that does not hold up. One flag is a reason to ask more, not always a reason to walk away.
How do you evaluate a business for sale?
Check what the owner really does, what is in the profit figure, and whether the profit covers the loan. In our scan of 3,928 US listings, 89% state profit that covers 1.25 times the payments on an assumed loan of 90% of the asking price over 10 years at 10%. That is our rough test, not a lender's. Profit is seller-stated.
Should I ask about seller financing?
Yes. Only 16% of US listings mention it, and a listing with no mention may still agree to a note. Ask how much, at what rate, for how long, and when payments start.
How many listings say how many hours the owner works?
9% of the 3,928 US listings we studied. Where a listing does state hours, the middle is 10 hours a week. Those sellers are probably the ones with the easier businesses, so the figure may flatter the market.
Paste a listing and see which of these questions it leaves open. Free.
Sources
Palavir Deal Scout, 3,928 US businesses-for-sale listings collected October 2026, scored by an AI model. Asking prices and seller-stated profit; a snapshot. General information, not financial, legal or lending advice.