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How to Buy a Business A business matchmaker on how to size up a company for sale.

By Jennifer Wang

Opinions expressed by Entrepreneur contributors are their own.

Ted Leverette tells you how to size up a deal.
Ted Leverette tells you how to size up a deal.
Photo© Kevin Garrett

Q: Am I crazy to acquire a business instead of starting one?

A: If you have fantasies of buying a faltering business for cheap and turning it around--yes, that would be the way madness lies. The Small Business Administration puts the failure rate of startups between 50 percent and 60 percent; but it's closer to 85 percent for those who buy in hopes of a turnaround, according to a Northeastern University study.