From your first search to your first day as owner
How to buy
a business.
Buying your first business? We’ll walk you through the steps, the questions to ask and the costs to plan for.
A business worth owning.
A process worth understanding.
The buying process, at a glance.
Six stages to help you organize the decisions. Due diligence, funding and negotiations often overlap.
On this page
You don’t have to figure this out all at once. Start with the kind of business that would fit your life and budget. Then work through the checks with the right people beside you.
New word? Dotted links give you a short explanation and take you to our business dictionary.
Stage 01 / Prepare
Decide what you want to own
Start with the life and work you want after the purchase. A business can have attractive numbers and still be a poor fit for your experience, location or available time. Put your criteria on one page before you start contacting sellers.
What to do
- Choose your role: running the business yourself, managing a team or adding it to a business you already own. Find out what skills that role requires.
- Set a price range and the cash you can put in. Leave room for fees, working capital (money to keep the business running) and unexpected costs. Keep a separate budget for your own living expenses.
- Choose the locations and industries you can operate in. Speak with an accountant, a lawyer who handles business purchases and potential lenders early about your plan.
Who is involved
You, your accountant and a potential lender. Add a local transaction lawyer before you sign documents.
Keep together
- One-page buying criteria
- Personal funding and cash budget
- Questions for advisers and lenders
Before you move onCan you explain which businesses fit, how you would operate one and what you can afford to investigate?
Pause if: The plan uses every available dollar for the purchase and leaves nothing to run the business.
Explore businesses for saleStage 02 / Search
Build a shortlist, then ask better questions
Use listings to find possibilities. Treat their financial summaries as a starting point for questions. Compare candidates using the same criteria so an exciting story does not replace the facts you need.
What to do
- Compare location, asking price, reported earnings, the owner’s responsibilities and the assets included. Record where a listing leaves something unanswered.
- Ask why the owner is selling, how the business earns its money and what would change when the owner leaves. Ask about the lease, important customers and key employees.
- Request an introductory conversation and the information available to qualified buyers. You may be asked to sign a confidentiality agreement before receiving detailed records.
Who is involved
The seller or listing broker. Ask whom the broker represents, what they do for you and how they are paid.
Keep together
- Comparable shortlist and question log
- Confidentiality agreement, if requested
- Initial financial and business summary
Before you move onIs there enough evidence of fit to justify spending time and professional fees on a closer review?
Pause if: You cannot establish what is being sold or what work the current owner actually performs.
Find a business brokerStage 03 / Evaluate
Understand the price and the funding
Sales, profit and money you can take home are not the same thing. An accountant can help you understand the advertised earnings, the cost of replacing the current owner’s work and the cash the business will need after you buy.
What to do
- Compare the financial statements with tax filings and supporting sales records. Ask for an explanation of unusual expenses, one-time income and any adjustments to reported profit.
- Build a cash-flow view that includes your operating role, maintenance, working capital and proposed debt payments. Consider what happens if sales fall or a major customer leaves.
- Discuss the proposed deal with lenders and investors. Establish what they need to review, what cash you would contribute and which conditions remain before funding can be committed.
Who is involved
An accountant, your lender or investors and, when needed, an independent valuation specialist.
Keep together
- Financial statements and supporting records
- Earnings adjustments and asset list
- Funding plan and lender information requests
Before you move onDoes the evidence support the price, and is there a credible route to funding the purchase and the business?
Pause if: The deal only works if everything goes better than expected, or the records do not support the advertised earnings.
Build your total cash budgetStage 04 / Offer
Agree the terms before committing
An offer or letter of intent sets out the proposed deal and what still needs to happen. The price is one part of it. The assets or shares being purchased, funding, due diligence, approvals and handover also need a clear place in the conversation.
What to do
- Discuss the price, what is included, any seller financing and how inventory or working capital would be handled. Have your advisers explain an asset purchase versus a share purchase for this business.
- Ask your lawyer to review confidentiality, exclusivity, deposits, deadlines and exit conditions. Do not assume a document is nonbinding because it is called a letter of intent.
- Agree who will provide the remaining information and when. Establish how you can inspect the operation while respecting confidentiality and the seller’s employees and customers.
Who is involved
Your transaction lawyer, the seller’s advisers, the broker and your funding partners.
Keep together
- Offer or letter of intent
- Due diligence scope and deadlines
- Deposit and exclusivity terms, where applicable
Before you move onDo you understand your obligations, the unresolved conditions and when you can withdraw?
Pause if: You are pressed to sign or pay a deposit before you understand the terms and the evidence available.
Understand a letter of intentStage 05 / Verify
Verify what you are buying
Due diligence means checking what you have been told before you buy. You, your accountant and your lawyer look at the records, ask questions and work out what needs to be resolved. Keep a list of open questions, the evidence you have and who will follow up.
What to do
- Have your accountant investigate earnings, debts, taxes, cash collection and the funding needed to operate. Ask specialists to review legal, technical or industry-specific issues.
- Check the right to use or acquire essential premises, equipment, software, intellectual property and contracts. Identify consents, licences and approvals needed for your proposed purchase structure.
- Understand customer concentration, supplier dependencies and key employees. Agree any introductions with the seller. Turn findings into a decision to proceed, change the terms or stop.
Who is involved
Your accountant and lawyer, with specialists for property, technology, environmental or regulated activities when relevant.
Keep together
- Financial, tax and debt records
- Contracts, lease and licence information
- People, customers, assets and open-issue log
Before you move onAre important risks understood, unresolved issues addressed and the conditions for proceeding satisfied?
Pause if: Important claims remain unsupported or essential permissions and contract transfers are unresolved.
Read the full due diligence checklistStage 06 / Take over
Close the deal. Plan the first day.
Closing completes the purchase. The handover is the practical work that keeps the business running. Build that plan while the deal is being negotiated so people, payments and customer service have clear owners when the business changes hands.
What to do
- Have your advisers confirm the final agreement, funding conditions, required consents and the closing checklist. Confirm who will receive each payment and when with the professional managing closing.
- Agree the seller’s training and support in writing: what they will do, for how long, how much it costs and who handles questions after the handover.
- Plan access to premises, banking, payroll, insurance, software and supplier accounts. Agree communications with employees and customers, then set a first-month operating review.
Who is involved
Both parties’ advisers, the funding provider, any closing agent and the people responsible for the handover.
Keep together
- Final purchase agreement and closing schedule
- Funding and consent confirmations
- Training, access and communication plan
Before you move onCan you legally complete the purchase and keep the business operating the next day?
Pause if: Funding, a critical consent or the practical handover is still uncertain as the closing date approaches.
Check your acquisition planPlan the whole purchase
How much cash do you need?
The asking price is only one input. Your purchase contribution, adviser and closing costs, operating cash and a reserve all need a place in the budget. Ask your accountant and lender which costs must be paid from your own funds.
These are example numbers to help you get started. Replace them with your own figures. Changing the currency changes the label, not the amounts.
Loan terms and seller financing
Each monthly payment pays back some of the amount borrowed (the principal), plus interest. This estimate uses a fixed interest rate for the whole loan. Change the example terms to match the loan you are discussing.
The yearly loan interest rate, not an APR that includes fees.
The number of monthly payments. For example, 120 months is 10 years.
Seller financing means paying part of the price to the seller over time. It needs the seller’s agreement and your lender may have conditions.
Your estimated cash needed
$120,000
USD · Your part of the purchase and costs, plus cash to keep the business running, after the funding you entered.
Initial monthly loan payments
$3,171.62
The monthly total at the start, while both loans are active. This does not include running costs or a final balloon payment.
Lender assumption: 10% annually over 120 months.
- Total project cost
- $360,000
- Lender payment / month
- $3,171.62
- Interest over both loan terms
- $140,594.12
A planning estimate for conversations with your advisers, not a loan offer or an approval check. It assumes funds are available when you take ownership and rates stay fixed. Include applicable taxes and fees in your costs. Investor returns are not calculated.
Open the full acquisition calculatorWorking capital keeps the doors open
Model when customer payments arrive and when payroll, inventory and suppliers must be paid. A profitable business can still need cash between those dates.
Start the funding conversation early
Compare cash contributions, outside investment, lender finance and any seller financing. Ask about security, repayments, approval conditions and the costs of each option.
Something to take with you
Your business acquisition checklist
Use this as a planning checklist from first search to handover. Download the fillable PDF to keep your notes and bring it to conversations with your advisers.
The on-page checkmarks are for this visit. Save the PDF after filling it in, or print it for a lasting copy.
Before your next step
Common questions about buying a business
How long does it take to buy a business?
There is no fixed schedule. Finding the right business, agreeing terms, checking records, arranging funding and obtaining approvals all affect timing. Some activities overlap. Ask your advisers to build a schedule with document deadlines, funding milestones and clear decision points for your particular transaction.
How much money do I need to buy a business?
Your cash requirement depends on the price, the financing available and the costs of taking over. Include your purchase contribution, professional fees, working capital and a reserve. A listing’s asking price does not tell you the total cash you will need, and a funding discussion is not the same as an approved loan.
Can I buy a business with seller financing?
It may be part of a negotiated deal if the seller agrees. Discuss repayment terms, security, the seller’s risk and how the arrangement would interact with other borrowing. Seller financing does not remove the need for cash planning, due diligence or professional review, and it is not available on every transaction.
Do I need a broker, lawyer and accountant?
Their roles differ. A broker can help with search, introductions and the transaction process; clarify whom they represent. An accountant helps assess the financial evidence and tax implications. A transaction lawyer advises on structure, documents, obligations and local requirements. Choose the expertise needed for the business and agree the scope and fees.
What is the difference between buying assets and buying shares?
An asset purchase involves agreed business assets; a share purchase involves ownership in the company. The treatment of liabilities, employees, taxes, contracts and permissions can differ by structure and jurisdiction. Ask your lawyer and tax adviser which structure fits the business and exactly what you would acquire or assume.
Go deeper, in the right place
Sources and local guidance
This is general educational guidance. The sequence can overlap, and purchase structures, taxes, employment rules, licences and financing requirements vary by country and transaction. Use qualified local advisers for your deal.
- United States · U.S. Small Business AdministrationPlanning and buying an existing business
Preparation, costs and professional support. SBA financing is a U.S. program; lender and program requirements need separate confirmation.
- Canada · Business Development Bank of CanadaSteps to buying a business
Preparation, negotiations, due diligence and integration.
- New Zealand · Business.govt.nzBuying a business or franchise
Ownership checks, contracts and the implications of taking over a business.
- Australia · Business.gov.auBuy an existing business
Readiness, valuation, financial records and transfer questions.
- United Kingdom · British Business BankDue diligence when buying a business
A closer look at the areas a buyer should investigate.
Written by Venturu. Sources checked November 4, 2026.
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