In 2023, Black or African American owners ran 201,000 U.S. employer firms—3.4% of the national total—and 4.4 million non-employer businesses, according to the Census Bureau. Their employer firms reported $249 billion in receipts; non-employer businesses reported $128.7 billion. Receipts are not profits.
Buying an operating company can give a new owner customers, staff and a record of sales from day one. It can also bring a lease, unpaid obligations or a business that depends too heavily on its founder. What transfers depends on the deal’s structure and terms.
BizBuySell recorded sales across these six categories in 2025. The figures below are the median sale price and median cash flow reported for each category. The data cover transactions reported through its marketplace, not every small-business sale in the country. A median is a reference point for comparison; it cannot tell a buyer what a particular company is worth.
Warren Buffett learned that distinction the hard way. Berkshire’s 1989 shareholder letter recounts his purchase of Baltimore department store Hochschild Kohn at a discount to book value. Three years later, he sold it for about what he had paid. He wrote:
It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price. —Warren Buffett
What a Buyer Acquires Along With the Business
An established company may already have trained workers, supplier relationships, customer contracts and equipment. Those assets can shorten the path to revenue, but they matter only if they remain useful after the sale. A customer may leave when the founder does. A lease may be close to expiring. Cash flow may include unpaid work performed by the owner.
Black buyer and operator Bruce Vann described the human stakes of owning a company in a panel discussion with other Black business buyers:
I don’t want any more vans working for people who don’t see them as full human beings. —Bruce Vann
An acquisition can give an owner more authority over a workplace. It does not make the transition easy or remove the financing barriers that often determine who can bid.
Six Businesses with Existing Customers and Operations
1. Cleaning Companies
Cleaning businesses had a median sale price of $325,000 and median reported cash flow of $135,017 in 2025, across 154 reported sales. Contracts with offices, apartment buildings, schools or health facilities can provide recurring work. The value of that revenue depends on whether customers stay after ownership changes.
Start with the contracts. Find out when they expire, whether the client can cancel after a sale and whether current prices cover labor and supplies. If one account provides a large share of revenue, losing it could change the whole deal. Staffing matters just as much: a company with frequent turnover may require more recruiting and supervision than the books suggest.
2. Laundromats
Machines are visible; their future repair costs are easier to overlook. The 169 laundromat and coin-laundry sales reported in 2025 had a median price of $287,000 and median reported cash flow of $77,104.
The seller may be the person who estimates jobs, holds key licenses or knows the largest customers. If so, the transition plan is part of the deal. Identify which credentials transfer, whether technicians plan to stay, and how warranties and service agreements will be handled after the sale. A high cash-flow figure is less useful if the business cannot complete the work without its founder.
5. Auto-repair Shops
A repair shop can have repeat customers, diagnostic equipment and a local reputation. In 2025, the median sale price was $399,000 and median reported cash flow was $185,970 across 247 transactions.
The staff may be the shop’s most valuable asset. Ask which mechanics intend to remain and whether customer relationships belong to the company or to individual technicians. Review equipment and parts inventory, the lease, customer return rates and complaints. Check records for used oil, batteries and other regulated waste; clean-up obligations can follow the property or business, depending on the deal and local rules.
6. Accounting and Tax Practices
A tax practice can produce repeat business without the machinery or vehicle fleet required by other categories. BizBuySell recorded 194 accounting and tax practice sales in 2025. Their median price was $500,000, with median reported cash flow of $246,797.
The central question is client retention. Do clients trust the firm, or do they return only because they know the practitioner who is selling it? Ask for client retention by year, revenue by service line, fee schedules and staff responsibilities. Confirm how client records will transfer, how data is protected and whether client consent or professional rules affect the transition.
Paying for a Purchase
The sale price is only the beginning of the budget. Legal and accounting fees, lender charges, inventory, repairs and working capital all require cash. A buyer who uses every available dollar at closing may have no room to cover payroll or a broken machine.
The SBA’s 7(a) program can support complete or partial ownership changes. The maximum loan amount is $5 million. SBA guarantees part of a lender’s loan; buyers apply through participating lenders, which assess the deal, credit and ability to repay. The business must meet eligibility requirements and demonstrate a reasonable path to repayment.
Other deals combine a buyer’s funds with bank financing, investor capital or payments to the seller over time. Seller financing can bridge a gap, but the terms matter: interest, repayment schedule, collateral and what happens if the business misses its targets. Have an attorney explain guarantees and ownership rights before signing.
Verify the Earnings Before Valuing the Business
A seller’s cash-flow figure is not necessarily the amount a buyer will take home. It may include compensation for work the seller performs, or expenses the new owner will still have to pay. Recalculate earnings after accounting for a replacement manager, debt payments, maintenance and a reserve for slow months.
The Small Business Administration recommends reviewing financial statements, tax returns, contracts, leases, permits and the sales agreement, with help from an accountant and a lawyer. Its guide to buying an existing business provides a due-diligence checklist.
Compare several years of tax returns with monthly statements, bank deposits, payroll and sales-tax filings. Ask the seller to explain unusual expenses and verify any proposed add-backs. Then confirm which customer contracts, employees, permits and debts will transfer. The answer can depend on whether the buyer purchases company ownership or selected assets, along with the contract and applicable law.
The business needs to work after the seller leaves. That is the test Buffett’s Hochschild Kohn example puts plainly: a low price cannot rescue weak economics.
Frequently Asked Questions
What does it cost to buy an established small business?
In BizBuySell’s reported 2025 transactions, median sale prices ranged from $287,000 for laundromats to $800,000 for HVAC businesses. A specific company may sell for more or less based on its location, assets, earnings, contracts and deal terms. Buyers also need money for closing costs and operations.
Can an SBA loan help finance a business purchase?
Yes. The SBA’s 7(a) program can finance complete or partial changes of ownership, subject to lender approval and program rules. The maximum 7(a) loan is $5 million. Buyers apply through participating lenders.
Is seller financing possible?
Some sellers agree to receive part of the purchase price over time. The parties negotiate the amount, interest, schedule and collateral. A lawyer should review the terms and explain the consequences of missed payments.
Which type of business is easiest to run?
None is easy by default. A company’s dependence on its founder, key staff, equipment, location and major customers may matter more than its industry. Buyers should match the work to their skills and identify who will handle daily operations.
What should a buyer review before making an offer?
At minimum, examine tax returns, bank statements, financial statements, payroll, contracts, leases, permits, licences, equipment and debts. An independent accountant and lawyer can verify earnings and clarify which assets and obligations transfer.
Does buying an operating business guarantee profit?
No. Past sales and cash flow do not guarantee future results. Customers can leave, costs can rise and equipment can fail. A buyer should test the records, budget for the transition and keep cash in reserve.
