Buying a Business: How to Find and Take Over the Right One

Buying a business instead of starting from scratch can give you customers, earnings and a brand from day one. But it requires thorough investigation before you sign. Here's a practical guide to the whole process — from finding the business to taking it over.

Short answer: Find a relevant business via our listings, decide whether the purchase should be structured as an asset purchase or a share purchase, put together a financing plan, and carry out thorough due diligence before signing the final agreement. Never skip due diligence, no matter how good a first impression the business gives.

Where do I find businesses for sale?

See our list of businesses for sale, where you can filter by industry, region, price and revenue — also see our combined overview of businesses for sale. Feel free to set up a free buyer alert, so you're automatically notified when a business matching your criteria is listed — whether you're looking for a webshop, a shop, or a manufacturing business to acquire or invest in.

Different paths to becoming a business owner

Buying an existing business isn't the only path. Some instead consider an MBO or MBI, where management takes over the business, while others grow into ownership through acquiring a smaller business as part of a bigger strategy, or via a merger of two businesses. Whichever path you take, you should have a clear business plan for the purchase before moving forward.

Asset purchase or share purchase — what's the difference?

In an asset purchase, you take over selected assets (inventory, customer agreements, domain, fixtures) without necessarily taking over the company and its history. In a share purchase, you take over the whole company — including any obligations and history. An asset purchase generally carries less risk of hidden obligations, while a share purchase can be more tax-advantageous in certain situations. See our general overview of tax and VAT on business deals, and talk to an accountant about what fits your deal best.

How do I finance a business purchase?

The most common financing sources are:

• Equity / savings
• Bank loan secured against the business
• Seller financing (the seller accepts part of the payment over time)
• Earn-out (part of the price depends on future earnings)
• Outside investors or partners — see our partnership listings if you're looking for a partner to team up with on a purchase

Banks and other financing sources will typically require a solid budget and business plan before financing an acquisition — mortgage lenders only come into play if the deal also involves real property. If the business also takes over physical equipment from the previous owner privately, it's worth knowing the rules on buying and selling equipment between yourself and your business.

What is due diligence, and why does it matter so much?

Due diligence is your investigation of the business before you commit for good. It's about confirming that what the seller has told you matches reality: accounts, contracts, employee matters, any lawsuits or debt. Never skip due diligence, no matter how good a first impression the business gives.

Want to know what the business is actually worth before making an offer? Use our free valuation tool, or read our guide to business valuation to understand how the price is typically set.

You should always check

• The past 2–3 years of accounts and tax matters
• Customer concentration — does revenue depend on a few large customers?
• Employment contracts and any notice periods — note that the Business Transfer Act generally means you take over employees on their current terms
• Supplier agreements and any lock-in periods
• Pending or potential disputes

What can go wrong after the takeover — and how do you avoid it?

• Key employees leave shortly after the takeover: Clarify before the purchase whether key employees are expected to stay, and consider a retention agreement.
• Customers don't automatically stay: Investigate how loyal customers actually are to the business — not just to the former owner personally.
• Hidden obligations surface: Thorough due diligence and a clear purchase agreement with warranties from the seller reduce this risk significantly.
• Overestimated synergies: Be realistic in your business case — don't count savings and synergies before you've actually seen them in practice.

See an example: Use our free purchase agreement template as a starting point, before your lawyer reviews it in full (currently in Danish).

Should I bring in a lawyer?

For larger or legally complex deals, or if the ownership structure is complex, we always recommend having a lawyer review the final purchase agreement. Our templates cover standard situations well, but a lawyer can catch details specific to your particular deal.

Frequently asked questions about buying a business

How much equity do I need myself to buy a business?

It depends on the price and the financing model, but banks often ask that you cover part of the purchase price yourself before financing the rest. Seller financing or an investor partner can reduce how much equity you need to have ready.

Can I buy a business without experience in the industry?

Yes, but it increases the risk, and many sellers will ask about your background. A transition period where the previous owner helps with the handover can significantly reduce the risk.

How long does it take to complete a business purchase?

Typically between 3 and 9 months from first contact to takeover, depending on the business's complexity and how quickly financing and due diligence fall into place.

Should I choose an asset purchase or a share purchase as a buyer?

As a buyer, you'll often prefer an asset purchase, because you then don't take over the company's history and any hidden obligations. The seller, conversely, will often prefer a share sale for tax reasons — so it typically ends in a negotiation where the price is adjusted based on which model you choose.

What's the difference between a strategic and a financial buyer?

A strategic buyer is typically another business in the same or a related industry, buying to achieve synergies. A financial buyer — e.g. an investor or a holding company — buys primarily for the financial return. The two buyer profiles often weight different things during negotiation.

Looking for your next business? See all businesses for sale or set up a free buyer alert so you don't miss the right match.