How to successfully buy a business in 2025

By Debbie Colley

Few things in life are certain, but one way to lower the risks of entrepreneurship is by acquiring an established business. Rather than facing the uncertainty of launching a startup, learning how to buy a business gives you the opportunity to step directly into a proven company. This comes complete with an active customer base, steady revenue and operational stability.

Whether you’re a first-time entrepreneur or a seasoned investor, understanding how to buy a company in today’s evolving marketplace can open doors to growth, flexibility, and long-term success.

Technology, digital sales and shifting economic trends have transformed the mergers and acquisitions market. In 2025, buying a business has never been more accessible. Whether that is by engaging in a virtual business tour, online deal negotiations or remote due diligence, it is easier to acquire businesses beyond your local area. Additionally, the rise of relocatable businesses – a trend accelerated by post-pandemic shifts – presents unique opportunities for buyers seeking scalable, flexible businesses.

The market is full of exciting opportunities for entrepreneurs looking to buy a business or explore businesses for sale. Working with an experienced company sales specialist makes buying an established business smoother by ensuring proper due diligence and smart planning.

This guide will walk you through the step-by-step process of how to buy a business, from identifying the right opportunity to negotiating the best deal – ensuring that you make a smart, strategic investment.

1. Why Buy a Business? Understanding the Benefits and How to Buy a Business Successfully

One of the biggest advantages of buying an established business is that you bypass the teething pains that come with launching a new business. Startups often face significant hurdles, from cashflow issues to market positioning and operational struggles. When you buy a business, many of these risks have already been mitigated. The previous owner has honed operations, built a loyal client base, and established a foothold in the industry – allowing you to step into a stable, profitable enterprise. By understanding how to buy a business, you position yourself to make informed strategic decisions that align with your financial goals and long-term vision.

Immediate Cashflow and Brand Recognition

Unlike starting from scratch, buying a business means you benefit from an existing customer base, brand reputation, and proven revenue streams. Brand recognition can give you a competitive advantage, making it easier to grow the business rather than spending years building credibility. As you explore how to buy a company, consider how brand equity and existing customer loyalty can significantly accelerate your return on investment. Lenders also look more favourably on businesses with an established cashflow over untested startups, which opens up more potential finance revenues.

Experienced Staff and Operational Stability

Another key benefit of buying a company is inheriting a trained workforce that has a deep understanding of the business. This allows for a seamless transition, reducing the learning curve as you take over. When learning how to buy a business, it’s important to evaluate not just financials but also operational structures, staff contracts and team culture. During the handover period, you can operate as an observing consultant, ensuring that you gain crucial insights while the business continues to operate seamlessly.

Lower Risk, Higher Growth Potential

Buying a business in your chosen industry can be far more strategic and lucrative than starting a new one. With an established solid foundation in place, you can focus on scaling and refining operations and increasing profitability rather than wrestling with the growing pains of a new business. A well-informed approach to how to buy a business ensures that you maximise scalability and long-term value from the moment you take over.

If you are considering a business acquisition, evaluating the financial health, market position and growth potential of your target is vital. With the right due diligence, you can make a strategic investment and accelerate your path to success. Learning how to buy a company gives you the tools and confidence needed to make smarter decisions and reduce acquisition risk.

2. Finding the Right Opportunity: How to Buy a Business That Matches Your Goals

Once you’ve determined to buy a business, perhaps one of the biggest challenges is sourcing the right business acquisition target. While there are plenty of opportunities available, not every business for sale will align with your skills, financial expectations and goals. To make a smart investment, you need a strategic and bespoke approach. Understanding how to buy a business effectively starts with refining your search criteria and knowing where and how to look.

Identifying the Best Business for You

Buying a business can be a highly personal experience – it is about finding your perfect business match for your experience, skills and long-term vision. Conducting a personal and professional audit can help refine your search by identifying:

Your Industry Expertise: If you have years of experience in engineering, for example, a retail acquisition may not be the best fit, no matter how tempting the price.
Your Skillset: Utilise your strengths when considering a business for sale, whether in operations, finance, marketing or leadership.
Your Location Preferences: Are you willing to relocate for your dream business acquisition, or would you prefer a local business? Many businesses for sale today also offer relocatable or remote opportunities, expanding your options.
Growth Potential & ROI: Look beyond current revenue – does the business offer long-term value or scalability? Can you spot hidden potential that could lead to greater success?

By taking the time to engage in honest introspection and due diligence, you’ll not only concentrate your search efficiently but also increase your chances of a successful acquisition. This step is a critical part of understanding how to buy a company that aligns with your lifestyle, ambition and personal values.

Where to Find Businesses for Sale

Once you know what type of business you want, the next step is sourcing acquisition opportunities. Some buyers attempt to contact business owners directly. This can be time-consuming, unproductive, and even met with resistance if the owner isn’t actively looking to sell. It also means potentially investing your time heavily into networking to source off-market deals with no assurance of success. One of the most overlooked steps in learning how to buy a business is understanding where to look and who to partner with.

A more effective tried-and-tested approach is working with a business sales specialist such as KBS Corporate. With access to a vetted network of businesses for sale, KBS Corporate can help you find high-potential, profitable acquisitions that fit your investment goals – whilst maintaining high levels of confidentiality when dealing with sensitive personal data.

As part of K3 Capital Group, we also provide access to additional professional business services, including tax advisory and business sales support. With an award-winning reputation, our group was named the No.1 UK Mid-Market Company Sales Adviser for 2024 by the London Stock Exchange Group (LSEG) and also ranked No.1 in Experian’s 2024 UK M&A rankings, and with decades of experience we are here to help you buy a business. These accolades reflect our deep understanding of how to buy a company successfully in a highly competitive market.

When buying a business, choosing the right business sales adviser is nearly as important as finding the right business to buy. At KBS Corporate we have a deep industry knowledge, vast connections, and a track record of successful deals ensuring that you are presented with the best possible acquisition opportunities. Whether you’re just beginning to explore how to buy a business, or ready to move forward with a deal, having the right specialist support by your side makes all the difference.

3. Due Diligence: A Critical Step When Buying an Established Business

Once you have found the right business for sale, the next step in the business acquisition process is due diligence. Think of this as the business equivalent of a house survey – a critical step to check the financial foundations are solid and to assess for any potential risks or operational inefficiencies before committing to the purchase.

Conducting due diligence ensures that when you are buying an established business, you are making a sound investment – a core principle in understanding how to buy a company wisely. At KBS Corporate, we streamline this process by providing detailed Information Memorandums (IMs) and Opportunity Summaries (OS). These vital documents cover a detailed look at the business including financial information, customer base, staff structures and growth opportunities, allowing you to assess whether a business aligns with your investment goals.

Financial Review

The first stage when considering how to buy a business is to analyse the company’s financial health. Reviewing the IM or OS will give you a clear insight into the business’ financial performance including:

Profit and Loss Summaries helping you understand revenue trends and overall profitability.
Balance Sheets allowing you to assess the business’ assets, liabilities and cash flow.
Debt Levels & Financial Obligations so you can identify any excessive debt or hidden liabilities.
Customer & Revenue Streams which you should check for over-reliance on a small pool of clients.

Legal & Operational Due Diligence

When buying an established business, you are benefiting from existing contracts, supplier agreements, and employee hierarchies. Whilst you are benefiting from the impetus the previous owner has produced, it is important to review these documents to highlight any unexpected liabilities. This is also a critical phase in grasping the legal complexity behind how to buy a company.

Key legal areas to review include:

Lease Agreements may include flexible renewal terms, or are there early termination penalties?
Supplier contracts could contain future cost obligations or include long-term commitments.
Employee Agreements – reviewing these could draw attention to beneficial non-compete clauses or retention bonuses.
Intellectual Property and Brand Protection documents ensure patents, trademarks and online reputation are safeguarded.

Understanding these factors is vital when working with a business sales specialist or directly negotiating an acquisition.

Assessing Business Risks and Competitor Landscape

Before completing a business acquisition, it is essential to review potential risks and understand the competitive landscape – another essential step in learning how to buy a business responsibly. Key considerations include:

Market Trends and Industry Stability – is demand declining or increasing within the sector?
Regulatory and Compliance Risks – does the business face sector specific or legal challenges?
Environmental Liabilities including public liabilities such as pollution, hazardous waste or remediation costs.
Review insurance coverage to ensure it is adequate, identifying any potential gaps in the coverage.

You may wish to produce a business risk assessment that ensures the company remains viable in the long term, particularly if you are planning to consider business financing options to fund your acquisition.

Whether you’re just starting to explore how to buy a company or ready to close a deal, KBS Corporate provides the expert guidance you need. At KBS Corporate, we provide expert guidance and company sales services to help you navigate the process seamlessly. With access to professional documentation, pre-approved opportunities and bespoke advice, we ensure that when you are buying an established business you are making a smart and significant investment.

4. Financing Your Business Purchasing

Once you have identified the perfect business for sale, it is important to understand how to buy a business. This involves exploring the business financing options available to you, assessing the business valuation, and using strategic negotiation tactics to secure the best deal.

Funding Options and Support for Business Acquisition

When buying an established business, securing the right funding is paramount. There are several business financing options available, ranging from government-supported schemes to private investment opportunities.

Government Support for Buying a Business

Entrepreneurs and small business owners can utilise a range of government-supported funding schemes, which aim to encourage growth through business acquisition. These funding options play a critical role when learning how to buy a business and maximise your return on investment:

Enterprise Investment Scheme (EIS) – this provides up to 30% income tax relief on investments up to £1million annually. The scheme provides Capital Gains Tax (CGT) exemption on profits derived from the sale of EIS shares. Extended until April 2035, this scheme is an attractive option for investing in a small business for sale.
Enterprise Capital Funds (ECF) is a government incentive that unites public and private sector investment to support high-growth small businesses that are struggling to secure traditional lines of investment.
Enterprise Finance Guarantee (ECF) offers government-supported loans between £1,000 and £1million to businesses that require extra financial security. Repayments can be spread from three months to ten years.

Private Financing Solutions: Bank Loans and Investors

If government-supported loans are not the right match, there are various private sector options available:

Bank Loans and Business Financing Options are available through major banks offering tailored business acquisition loans, including private equity funding, venture capital, and structured financing solutions.
Angel Investors and Private Equity provide funding in exchange for future returns or equity. This can reduce immediate repayment pressures, although it may also mean losing full ownership and meeting high investor expectations.
Venture Capital (VC) firms are focused on high-growth businesses, providing capital in exchange for a stake in the company. This sort of investment is highly competitive, which means only the most scalable opportunities secure funding.

When choosing how to buy a business, you must weigh up the trade-offs between financing methods, assessing factors such as ownership retention, repayment options and growth potential.

Understanding Business Valuation and Negotiating Price When Learning How to Buy a Company

Before making an offer on a business for sale, understanding business valuation methods is crucial to ensure you are securing the best possible price.

Common Business Valuation Methods

Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) is a popular profitability metric. It uses a multiple-based valuation method which is applied to the EBITDA to estimate the business’s true market value.
Revenue Multiples compare a business’s annual revenue to sector benchmarks to determine value.
Discounted Cash Flow (DCF) Analysis uses future projected cashflows, discounted to present value, to assess long-term profitability, which is a valuable tool for assessing long-term performance.

Tips for Negotiating the Best Deal

Leverage due diligence findings from financials, liabilities, and operational risk to assess the true value of the business and achieve better terms.
Researching industry valuation trends by understanding sector benchmarks ensures you are producing a fair offer, which is more likely to be accepted.
Consider intangible assets including factors such as brand reputation, customer base and goodwill which can influence valuation. Highlighting these aspects in negotiations can provide leverage.
Utilise smart deal structuring such as deferred considerations where payments are made in instalments. A variation of this is an earnout, where part of the payment is based on post-acquisition business performance. Deferred consideration and earnouts can be incredibly effective business financing options, particularly if securing bank loans is challenging. These deal structures reduce upfront costs and align incentives between you and the seller.

Understanding how to buy a business involves more than just sourcing the right business for sale. It requires careful financial planning, valuation analysis and smart negotiation. Whether you are using a company sales specialist, government-supported funding or private financing solutions, making an informed decision will help you maximise your profitability and minimise risk. This is especially important for buyers looking to understand how to buy a company with confidence and clarity.

At KBS Corporate, we specialise in supporting business sales, ensuring our clients secure the best possible opportunities with expert guidance and professional negotiation strategies.

5. Closing the Deal and Transitioning Successfully

The final step in how to buy a business is closing the deal and ensuring a smooth handover period. From finalising legal agreements to onboarding staff, and reassuring customers, a well-planned handover will set you up for success.

Finalising the Purchase Agreement

At this stage of buying an established business, you will work closely with lawyers and company sales specialists to draft and review contracts. Ensuring the correct legal protections are in place is vital to safeguard your investment. Understanding these contract elements is an essential part of knowing how to buy a company with confidence and security.

The Purchase Agreement is a legally binding document highlighting the terms of sale including:

Purchase price and payment structure, detailing exactly how and when the funds will be released. If an earnout is involved, ensure these terms are explicitly defined.
Asset and liabilities, specifying which assets such as property, equipment and intellectual property are included and whether any outstanding debts will transfer to your ownership.
Conditions of the sale, covering any warranties, representations or contingencies that should be met before finalising the sale.

Protecting Your Business After the Sale

A Non-Compete Clause could be a useful tool when buying a business. This prevents the previous owner and key employees from starting a rival business or poaching your customers for a predefined period.

During your business acquisition you may encounter a Transition Services Agreement (TSA) which outlines the services the seller will provide during the handover period. This may include training, operational support or introductions to key clients. This can be crucial in minimising disruption and ensuring a smooth handover. These transitional tools are essential parts of the process when understanding how to buy a business and scale it successfully from day one.

Smooth Business Handover and Post-Purchase Success

Congratulations, you have successfully completed the business acquisition! But the work isn’t over yet. Ensuring a seamless transition is key to long-term success.

One major advantage of buying an established business is inheriting a highly skilled workforce. During due diligence, you will have identified any staffing gaps, allowing you to onboard new employees strategically. Retaining essential team members ensures continuity in operations, customer service and internal expertise.

Your customers are the lifeblood of your new business. A smooth transition should maintain open communication by informing existing clients about the change of ownership while allaying any concerns about changes to previous high-quality service. If the previous owner had strong relationships with clients, consider a joint handover period.

Successfully buying a business does not end with the transaction, it’s about building long-term growth. By securing a well-structured deal, retaining key staff, and managing customer relationships effectively, you will be in a prime position to maximise your investment.

At KBS Corporate, we provide expert guidance throughout the business acquisition process, from finding businesses for sale to closing the deal and transitioning smoothly. Our expertise ensures your new business starts on the right foot with minimal disruption.

Make a Strategic Investment in 2025

Buying a business in 2025 is a powerful strategy for entrepreneurs looking to bypass the risks of a startup and step into an established, revenue-generating enterprise. Whether you are seeking immediate cashflow, brand recognition, or a trained workforce, acquiring an existing business offers unparalleled advantages. With the rise of digital dealmaking, remote business acquisitions and flexible business models, there has never been a better time to explore businesses for sale. Now more than ever, understanding how to buy a company is a skill that can unlock sustainable income, freedom, and business growth.

However, success in business acquisition requires careful planning, thorough due diligence, and expert negotiation. From evaluating business financing options to ensuring a smooth transition post-purchase, every step in the process impacts your long-term success.

Ready To Buy an Established Business?

If you are ready to buy a business, partnering with a trusted business sales specialist can make all the difference. At KBS Corporate, we offer exclusive access to high-quality businesses for sale, expert valuation insights, and tailored advisory services to help you navigate the acquisition process with confidence.

Take the next step in your business ownership journey today. Contact a KBS Corporate sales specialist to discuss your goals and discover the right opportunities for you. Your next big business move starts here.