Buying a business

1. 1

   Define what you want

   Decide on the industry, location, budget, and how hands-on you want to be. Think about your skills, lifestyle and how much risk you're comfortable with. A clear brief makes it far easier to filter listings and spot a good fit.

2. 2

   Asking price vs value

   An asking price is the seller's expectation, not a valuation. Value usually depends on sustainable earnings, assets, lease terms, customer concentration and how dependent the business is on the current owner. Consider getting an independent valuation.

3. 3

   Request financial information

   Ask for at least three years of financial statements, recent management accounts, tax returns and bank statements where appropriate. Look for consistency between them, and ask how the owner's own wages and personal expenses are treated.

4. 4

   Do your due diligence

   Check the lease, key contracts, staff arrangements, licences and permits, supplier terms, equipment condition and any disputes. Talk to the landlord and, where appropriate, key suppliers. Verify what you're told — don't assume.

5. 5

   Get legal and accounting advice

   Engage a lawyer and an accountant experienced in business purchases before you sign anything. They can review the sale and purchase agreement, structure the purchase, and help you set conditions such as finance and due diligence.

6. 6

   Franchise-specific checks

   Review the franchise agreement and disclosure documents carefully. Understand royalties, marketing levies, territory rights, renewal terms, fit-out obligations and exit conditions. Speak to existing and former franchisees where you can.

The Business Board is an advertising platform. We do not act as a business broker, real estate agent or party to transactions. Buyers and sellers deal directly after enquiry and should obtain their own legal, financial and professional advice.