Zenith’s Chelsea Ransom-Cooper, CFP® sat down with business broker Erika Baez-Grimes, CM&AP to break down everything first-time buyers need to know about entrepreneurship through acquisition, from the silver tsunami reshaping small business ownership to the one question you should ask every seller you meet.

Why This Moment Matters

Chelsea: Why is this conversation so important right now, specifically?

Erika: We are in the silver tsunami. We have 10,000 boomers retiring every single day, and 25 to 40 percent of those individuals own businesses. Half the time, when they’re looking to transition the business to their kids, the kids don’t want it. By the time they get to a broker, they’ve already talked to their kids, they’ve already looked at an ESOP, and those options X’d out. Then they come to me for a third-party exit. There is a ton of inventory out there right now, and instead of opening something from scratch, it’s so much easier and better to take something that already has proof of concept.

Chelsea: CNBC recently published a piece calling this a $3 trillion opportunity for Black business owners. What do you make of that?

Erika: It’s real. And it’s not just for Black buyers, anyone who’s been watching this market should be paying attention. The challenge is that a lot of sellers are looking for someone who really understands their business and what they’ve built. There’s a gap in succession planning. Most owners intend to transfer to their kids, but they’re not doing the actual work. When you get to the nitty-gritty and ask how many owners are having real conversations with the next generation about how the business actually operates, it’s not many. That’s the opportunity.

“Instead of starting something from scratch, it’s so much easier and better to take something that already has proof of concept.”

Chelsea: What kinds of businesses are we actually talking about? What’s realistic for someone who’s never owned a business before?

Erika: People hear ‘ugly businesses’ all the time — HVAC, plumbing, roofing, septic. Businesses that technology won’t wipe away anytime soon. But I also encourage people to look at the aging boomer market: non-emergency medical transport, senior living facilities, and home care. Those are businesses with serious tailwinds. I also want people to be realistic about businesses that sound passive but aren’t. Car washes, laundromats, vending machines — it’s all work. It’s all active. If something goes wrong in that car wash, you’re the one fixing it. And I would think twice about a laundromat, you can already buy a countertop washer-dryer on Amazon. Think about where we’re headed, not just where we are.

Is This The Right Path For You?

Chelsea: Before anyone starts looking at businesses, what questions should they be asking themselves?

Erika: Think about what you want to do every single day. Not what sounds good on paper, not what has the best margins, what do you actually want to be doing? I had a buyer from the cyber and IT space who found a flower shop with great margins and clean books. I told him to go spend a day with the owner before he did anything. The delivery driver called out that day. Now he’s driving flowers to funeral homes, getting pricked, showing up with empathy. He called me at the end of the day and said, ‘I don’t want this business.’ Even though the EBITDA was excellent. You have to know yourself first.

Chelsea: What are the signs that someone might not be ready, or that this path might not be right for them?

Erika: Capital mismatch is a big one. If you’re looking at a capital-intensive business but you don’t have the cash to fulfill contracts upfront, stay away from that category. Another one is just personality fit. If a business runs on a lot of human capital and you’re not good with people, the margins don’t matter; you’re going to struggle. I also tell people: ask yourself what you would be doing if money and location weren’t a factor? Find a business that operates in that world. You can even use AI tools now — Claude or ChatGPT have been learning how you think. Ask them what business might suit you. Then find one in that space and shadow the owner for a week.

“You will get the answer very, very quickly.”

The Money: Financing The Deal

Chelsea: Let’s talk about how people actually pay for these acquisitions. There’s a lot of content online about buying businesses with zero money down. Is that real?

Erika: I have been a business broker for almost 7 years. I have never, ever, ever, ever seen a 100% financed deal. Ever. Occasionally, a seller will hold a note, but you’re still coming in with your own cash. I know it’s talked about. I can only tell you what I’ve seen in my lifetime. So let’s get past that.

Chelsea: So how does the SBA loan process actually work?

Erika: Think of it like buying a house: you get pre-approved first. For a business, you can look for listings on BizBuySell that are already marked ‘SBA pre-approved.’ What that means is the broker or owner took their financials to a bank, and the bank said, if you bring us a qualified buyer, we’ll back a loan on this business. As a buyer, plan for about 10% down. On a $1 million business, that’s $100,000. And banks want to see that you’re not wiping out your savings entirely; they want you to have reserves. Every bank has different guidelines, and the SBA’s requirements and the individual bank’s risk tolerance can differ, so shop around.

Chelsea: What about buyers who are currently unemployed, which is a real situation given all the recent layoffs?

Erika: It doesn’t automatically close the door. If the business’s income can sustain the loan, and you have relevant industry experience and capital in the bank, banks will look at you differently. They’re evaluating whether you can run this business and whether the business can service the debt. Your current income matters less than your trajectory and your fit. Some of the larger SBA lenders tend to be more flexible on this, it’s worth having those conversations directly.

Finding The Right Deal

Chelsea: If someone is ready to start looking, where do they actually go?

Erika: BizBuySell is the most popular platform for deal flow. You can browse listings, filter for SBA pre-approved opportunities, and get a sense of what’s out there in your budget range. There are also buy-side brokers who specialize in helping buyers find deals. But honestly? The best deal you can possibly get is walking into a business you’d want to own and asking the owner what they plan to do when they retire. Nine times out of ten, they haven’t even thought about it yet. Once a business is listed with a broker, the broker’s job is to get the highest price for the seller. Before that moment, there’s a lot more room to have a real conversation.

Chelsea: What does the process look like from first conversation to closing? How long are we actually talking?

Erika: If you’re ready, pre-approved, know your budget, know what you’re looking for, it can go anywhere from 3 months to a year, cradle to grave. But there are people out there who are tire kickers. They’re evaluating deal after deal, waiting for the unicorn. You guys, there is hair on every deal. I’ve never seen one where I’m like, wow, perfect numbers, perfect price, perfect employee mix. Never. Most of these businesses started in the ‘60s and ‘70s. That’s what you’re dealing with. If you’re consistently looking for the unicorn, that’s not a realistic expectation. Know your non-negotiables, bend on everything else, and you’ll find something real.

“Bend, don’t fold. You’ll be able to find some really cool opportunities out there.”

Building Your Ideal Team

Chelsea: What are the biggest regrets you hear from buyers after the transaction?

Erika: Not paying for a good deal team. Buyers think, I’m smart, I’m good with numbers, I have AI tools, I can handle this myself. And they shoot themselves in the foot. They didn’t do real due diligence. They didn’t look under the hood the right way because they wanted to save a few dollars on fees. I hear it all the time: ‘I wish I had an attorney. I wish I had a CPA. I wish I had Chelsea.’ You need people who think for you, who see things you don’t see. Start with the end in mind. You want a broker or advisor, an M&A attorney, a financial advisor who knows how this fits into your bigger picture, and a certified business appraiser.

Chelsea: On that last point, what should a buyer be skeptical of when a seller is pitching them?

Erika: I don’t want you going in skeptical of the seller’s story; I want you to understand it. Sometimes there’s a very real reason they need to sell quickly. What I do want you to verify is the numbers. Ask for a certified business valuation. Not an opinion of value, not a broker estimate, a formal appraisal from an accredited business appraiser. Same way you get an appraisal on a house. That number is defensible in court. If someone has one, great. If they don’t, get one done before you go further. The banks will require it anyway if you’re financing.

One Last Question

Chelsea: For someone who has been thinking, okay, I want to do this. What’s the one thing you’d tell them to do tomorrow morning?

Erika: Find a business you’d want to own and walk through the front door. Go talk to the owner. Ask them what they’re planning to do with the place. Ask if you can shadow them for a day. And while you’re doing that, go talk to your money people. Know your budget. Know your pre-approval number. Because once you find the right thing, you want to be ready to move. The deal is out there. It’s not perfect. But it’s out there.

Connect with Erika Baez-Grimes

@ErikaTheBroker on Instagram | Erika Baez-Grimes on LinkedIn 

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