There are many factors that should be considered. First and most importantly, to be successful in a small to medium size business, you as the new owner must have a passion for the business. Additionally, your available financial resources will enter into determining the size of the business. It is possible to buy larger businesses with additional equity partners in the venture. But, keep in mind that, with partners, sometimes control is given up to obtain their investment.
A careful analysis of your skills is important identifying a target industry or business. Your background, next to your financial capabilities, is an important consideration when deciding the correct direction for your search.
When you look at a business, you should feel that you can do better than the current owner. If you don’t feel that way, you will likely pay too much for the business.