Buy box
A buy box is a written set of acquisition criteria — industry, geography, revenue or earnings range, and preferred deal structure — that a buyer uses to filter opportunities and communicate clearly what they are looking for to brokers, advisors and sellers.
A vague buyer wastes everyone’s time, including their own. A buy box forces the criteria that actually matter onto paper before the search starts, so a broker or seller can tell in one read whether their business is even a fit — and a buyer can say no quickly to what is not.
What a buy box typically specifies
- Industry or sector, sometimes with named sub-sectors to include or exclude
- Geography — a province, a metro area, or a maximum distance from home
- Revenue and earnings range, usually expressed as SDE or EBITDA
- Deal structure preferences — asset versus share purchase, seller financing, transition length
- Deal-breakers — customer concentration limits, unionized labour, leased versus owned real estate
Why brokers ask for one
A broker managing dozens of buyer relationships uses buy boxes to route new listings efficiently — a business that does not match gets skipped rather than shopped broadly and prematurely. A buyer who keeps the criteria current and specific tends to see better-matched opportunities sooner.
Sources
This definition is checked against primary sources. Links were last confirmed on the dates shown.
- 01Treadstone LawLegal commentaryBuying & Selling a Business
- 02Treadstone LawLegal commentaryA First-Time Business Buyer's Guide to Buying in Ontario
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