How to Buy a Business in Nashville: A Complete Guide
Nashville’s booming economy makes it one of the best markets in the Southeast to acquire an existing business. A city adding tens of thousands of new residents annually means growing customer bases across virtually every sector. Whether you want to buy a restaurant in East Nashville, acquire a healthcare services company, purchase a franchise, or take over a profitable service business, this guide covers everything you need to know about buying a business in Nashville.
This guide is part of our complete Doing Business in Nashville resource. For legal guidance during the acquisition process, see our Nashville business lawyers guide. For acquisition financing, review small business funding in Nashville and Nashville banks.
Why Buy an Existing Business in Nashville?
- Established customer base: Skip the early startup struggle and acquire revenue from day one
- Growing market: Nashville’s population growth means your customer base could expand significantly over time
- Seller financing opportunities: Many Nashville business owners will finance part of the sale price, reducing upfront capital needed
- SBA acquisition financing: SBA 7(a) loans are frequently used to finance business acquisitions in Nashville with as little as 10% down
- No state income tax: Tennessee’s lack of personal income tax benefits both you and the seller, often making Nashville businesses more affordable
Where to Find Nashville Businesses for Sale
- BizBuySell.com: The largest online marketplace for business sales — filter by Nashville/Davidson County
- BusinessBroker.net: Another major platform with Nashville listings
- LoopNet: For businesses with significant commercial real estate component
- Nashville Business Journal: Occasionally features acquisition opportunities and M&A news
- Nashville business brokers: Work with a local broker who knows Nashville deals — they often have off-market listings
- Direct outreach: Identify businesses you want to own and reach out directly — many owners are open to acquisition conversations even if not formally listed
Top Nashville Business Brokers
- Viking Mergers & Acquisitions — Nashville: One of the most active lower-middle-market M&A firms in Tennessee
- Sunbelt Business Brokers — Nashville: National franchise with strong Nashville presence for main street and lower-middle-market acquisitions
- CGK Business Sales: Nashville-focused business broker for small to mid-size businesses
- Murphy Business Sales — Nashville: National broker with active Nashville territory
- Nash Group: Nashville-based M&A advisory for healthcare and tech companies
Due Diligence When Buying a Nashville Business
Thorough due diligence is non-negotiable. Nashville’s hot market doesn’t mean skipping steps:
Financial Due Diligence
- 3-5 years of tax returns, P&L statements, and balance sheets
- Verify revenue with bank statements — not just QuickBooks reports
- Understand Nashville-specific seasonality (tourism businesses spike in spring/fall)
- Check for outstanding Tennessee tax liens at tn.gov/revenue
- Review all accounts receivable aging and any customer concentration risks
Legal Due Diligence
- Review all contracts, leases, and vendor agreements
- Check Davidson County court records for pending litigation
- Verify all required state and Metro Nashville licenses and permits are current
- Review employee contracts, non-competes, and benefit obligations
- Confirm intellectual property ownership (trademarks, trade names)
Operational Due Diligence
- Meet key employees and assess retention risk
- Understand the owner’s actual role — businesses dependent on the seller are risky
- Walk the physical location; understand facility condition and lease terms
- Talk to customers and suppliers independently if possible
Financing a Nashville Business Acquisition
- SBA 7(a) Loan: The most common acquisition financing tool — up to $5 million, 10% typical down payment for acquisitions. Nashville SBA-preferred lenders include CapStar Bank, Pinnacle, and First Horizon.
- Seller financing: Negotiate a seller note (often 10-30% of purchase price) — very common in Nashville small business sales
- Conventional bank financing: For businesses with significant hard assets or real estate
- Earnout provisions: Tie part of the price to future performance — protects buyers from optimistic projections
- Private equity: For acquisitions above $1 million — Nashville has active PE firms and family offices
Closing the Deal: Nashville Business Purchase Process
- Letter of Intent (LOI): Non-binding agreement on key deal terms — price, structure, exclusivity period
- Due diligence period: Typically 30-60 days in Nashville deals
- Purchase Agreement: Binding contract — use a Nashville M&A attorney (Bass Berry, Waller, Bradley)
- Financing commitment: Finalize SBA or bank loan approval
- Tennessee and Nashville licenses: Transfer or apply for new business licenses; notify Metro Nashville of ownership change
- Closing: Sign documents, fund escrow, receive ownership transfer
- Transition period: Negotiate seller training period — typically 30-90 days
Nashville-Specific Acquisition Considerations
- Liquor licenses: Nashville restaurant/bar acquisitions involve complex liquor license transfers — plan 60-90 days for this process with Metro Nashville
- Healthcare businesses: Medical practices, home health agencies, and healthcare businesses require Tennessee DOH licensing review on ownership changes
- Real estate component: Nashville property values have appreciated significantly — if the business owns real estate, get a current appraisal
- Non-competes: Tennessee courts generally enforce reasonable non-compete agreements — ensure the seller is bound by one post-closing
Also buying businesses in other cities? See our guides for doing business in Chicago and doing business in Phoenix.
Get expert guidance on Nashville business acquisitions.
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