I recommend reading Buying a Small Business http://amzn.to/bmRz0T. It is really outdated in terms of the search methods (You can use a computer to do searches for information!) but the fundamentals about evaluating financials and understanding the relationship between buyer and seller haven't changed. One of the most intriguing aspects is for "lifestyle business" owners, your credentials and commitment to growing and protecting the seller's baby is nearly as important as your offer price. Huge caveat is that 99% of Business Brokers are complete morons and terrible to deal with, give them no insight into your liquidity, net worth, etc and stick to the type of business criteria or industry you are interested in.