How To Buy a Business

Research and budgeting

You should begin the buying process by researching which businesses you want to acquire and why you want to become an owner. We recommend asking yourself the following questions to help with this stage:

• What are my motivations for owning a company?
• Do I have the necessary skills and experience?
• Which sector suits me best?
• Do I want to purchase a business near where I live?

Once you have narrowed down the type of enterprise you believe suits you best, it is time to assess your finances. We recommend creating a realistic budget and considering whether you need to borrow money to complete the transaction. If so, now is the ideal time to speak to a lender about your loan options.

Shortlisting, viewings and due diligence

You can now begin searching for businesses for sale. It is worth noting that many companies on the market are not publicly listed, so speaking to one of our experts is advised. We can then add you to our esteemed list of buyers and let you know when a suitable firm becomes available.

Once you find a business you are interested in, you should arrange a viewing and request financial and operational documents so you can conduct your due diligence. If the sale is being completed confidentially, you will usually be asked to sign a non-disclosure agreement (NDA) before you proceed any further.

Negotiation and offer acceptance

If you are excited about one of the opportunities you have viewed and the financials look healthy, you are ready to bid. Liaise with the agents in charge of the sale and submit an offer you think is fair.

The existing owner will then be informed of the price you are willing to pay, and will be able to accept, decline or make a counteroffer. It is then up to you to prepare a new bid or accept their proposal.

Contract exchange and completion

Now that you have had an offer accepted, you should promptly instruct solicitors to handle the contracts. The sooner you do this, the better, with the completion date estimated to be up to six months from this moment.

While we understand that waiting to exchange contracts can be frustrating, it does give you lots of time to start planning for when you take over. Consider preparing press releases, finding ways to improve efficiency and formulating new ideas to drive the business forward.

Buy a business using our expertise now

We will be with you at every stage of the business buying process. Instruct us to assist with your acquisition to improve your chances of a fast and seamless sale. Call 0113 340 9840 or use the form below to get started.