If you’re thinking about becoming an entrepreneur, here’s some good news: you’ve already made arguably the most important step.
You’ve discovered (or perhaps you’re about to discover) the life-changing potential of buying a business. Many people associate entrepreneurship with the grind and unpredictability of launching a startup, and so the idea of buying instead of starting a business can feel counterintuitive, or surprising.
But seasoned entrepreneurs know that buying a business is a powerful alternative option, which doesn’t make a venture any less ‘yours’ - and you don’t need to be rich to do it, either.
In this article, we’re going to break down all the key steps involved in buying a business. You’ll discover how you can get started, and how much time and money you should expect it to take (spoiler: it can often be a lot less than you might think).
We’ve linked to more detailed articles and guides throughout, so you can take a deeper dive into any of these stages as you work your way through the process. If you’re just starting out on your entrepreneurial journey, good luck! Let’s dive in.
Step One – Preparing to Buy
If you’re reading this article, there’s a good chance this is the stage you currently find yourself in. You’re excited by the idea of buying a business, and maybe you’ve browsed a few businesses for sale, but you’re unsure how to take the first step.
The first thing you’ll need to understand is what financing options are available to you. You don’t need a six-figure sum sitting in your bank account in order to buy a business. If you have a comprehensive business plan and make a convincing case, a bank (or other lender) will lend you the money to fund the purchase.
There is also the option of seller financing – which is when the current business owner acts like a lender and finances part of the sale price. You then repay them with the profits of the business once you take it over. This can free up funds on your side to help you grow the business, but not all sellers will offer seller financing as it comes with an increased level of risk for them.
Repayment to a lender could come in the form of debt (which you repay over a set period of time) or equity (when the lender receives a percentage of profits from the business). In some situations there may also be ‘debt to equity’, where the former is converted into the latter. BusinessesForSale.com breaks all of these down in our article How do you finance buying a business? The options explained.
One other question you might have in the early stages is whether you need to use a business broker, lawyer or accountant while buying a business. The short answer is: not in every case, but getting professional advice can often save you a huge amount of time and money, so don’t skimp on good advice. We explore this question in more detail in our article Do I need to use a business broker to buy a business in the UK? 2026.
Step Two - Finding a Business to Buy
You’re already in the best place to find a business for sale – BusinessesForSale.com! We have more than 58,000 businesses for sale across the world, and more than 13,000 businesses for sale in the UK.
But enough with the shameless plugs. You want to know what sorts of things to look for while searching. Transparent, detailed financial information is the biggest green flag, but another key question to ask is why the business is selling. One misconception people have about sellers is that they’re always selling because their business is failing – but this is far from the reality.
Most people sell their business because of personal reasons, which could be anything from retirement, divorce, illness, relocating, having children, or simply changed priorities. In an ideal world, you’ll find a business with high potential that’s selling for one of the reasons just mentioned. Our article The Ten Essential Questions all Business Buyers Should Ask Sellers can give you a steer as to the sorts of questions you should be asking, and what information you’ll want to gather at this stage.
With so many businesses out there, you might be wondering how you can find a diamond in the rough that other people haven’t discovered. We’ve got you covered. In our article How to find a ‘hidden gem’ business to buy, we interviewed business brokers around the world, who gave us their expert tips about the sorts of businesses they think buyers should be on the lookout for, and how to find them.
Tip: To find out what industries are thriving in 2026 and might make good acquisition targets, read The Most Profitable Businesses in the UK 2026.
Step Three – Due Diligence
So you’ve found a business that looks interesting. What next? You need to gather as much information as you possibly can about your target, to make sure you know what you’re purchasing. It’s nobody’s responsibility but your own if you purchase a business only to discover that all its revenue comes from one client, who suddenly decides to cancel their contract.
The due diligence stage is absolutely critical. It’s where most deals are made – and where most break down. You’ll need to investigate your target’s financials, assets, sales, marketing, employees, systems, competition, customers, contracts, and suppliers. It’s a lot, but if you aren’t thorough you could be setting yourself up for some nasty (and expensive) surprises further down the line.
For a complete breakdown of the due diligence process, you should read our Due Diligence Checklist: Buying a Business in The UK. Also worth checking out is our article The Secrets of Due Diligence – Everything You Need to Know When Buying a Business, which looks at some aspects that are sometimes overlooked.
The due diligence phase is where you might want to consider bringing a lawyer, accountant or business broker on board. Their experience can help ensure that you don’t forget about any important steps, and it can also be helpful just to have a sounding board when you’re working your way through contracts and documents all day long.
Another crucial part of the due diligence phase which an accountant or broker might help with is valuation. It’s certainly possible to go it alone if you’ve got a talent for maths and asking difficult questions, but they’ll be able to guide you on the current state of the market, and whether a seller’s multiples are realistic. For a detailed look at the various methods by which you can value a business, make sure to read How Do You Value a Business? The Different Methods Explained.
Step Four – Making an Offer
If you’ve done your due diligence and you’re convinced that this is the business for you then, first of all – congratulations! Now it’s time to make an offer. The way this is usually done is through a letter of intent (LOI) which outlines the terms of the deal. This will include the sale price, timeframes, and details about the transition.
It’s usually not a legally binding document, although it might have legally binding elements (such as an agreement that one party will pay the other’s legal fees if they decide to walk away). You’ll learn everything you need to know about drafting a Letter of Intent from a recent episode of our series M&A Talk, where Vice President of Mergers & Acquisitions Nick Pili spoke with BusinessesForSale.com Chairman Marcus Markou.
Step Five – Negotiation and Closing
Once the letters of intent are drafted, you’ll then move into one final stage of due diligence and negotiation before the deal is closed, and the contracts are signed. This is your last chance to ask any question you didn’t ask in step three, so keep your eyes and ears peeled.
In our recent article How to Negotiate Like a Pro in 2026, BusinessesForSale.com explored some tips and tools that buyers can use to help them negotiate the best possible price on their deal. Ultimately it all comes down to psychology: understanding the mindset of the person you’re negotiating with, and what matters most to them.
You also need to make sure you’re thoroughly prepared, and know exactly where to draw your lines in the sand. How much flexibility do you have in your budget? If the answer is very little, perhaps you’ll have more room to give when it comes to employees, systems or contracts. You need to be transparent enough to generate trust, but keep some of your cards close to your chest.
Step Six - Starting Life as a New Business Owner
If you’ve managed to successfully navigate every step of the buying process, then congratulations! You’re officially the owner of your new business. In many ways, this is where the journey really begins. You’ll need to be prepared to put in the hours to manage the transition, and drive your new venture towards success.
FAQs
How much money do I need to buy a business in the UK?
You don’t need a large amount of cash upfront. Many buyers use bank lending, asset finance, or seller financing, provided the business can comfortably service the debt.
Do I need a business broker or advisor when buying a business?
Not always, but professional advice can reduce risk. Brokers, accountants, and solicitors help with valuation, contracts, and due diligence, especially for first-time buyers.
What is due diligence when buying a business?
Due diligence is the process of investigating a business before purchase. It covers financials, contracts, staff, customers, and liabilities to uncover risks.
How long does it take to buy a business?
Most purchases take three to nine months. Timelines depend on deal complexity, financing, and how smoothly due diligence and negotiations progress.
Can I negotiate the price when buying a business?
Yes. Price, payment terms, and transition support are commonly negotiated. Preparation and understanding the seller’s motivations are key.
What happens after I complete the purchase?
After completion, the focus shifts to transition. This includes managing staff, retaining customers, and implementing your growth plans.