Acquiring an existing business, rather than starting one from scratch, offers a genuine alternative path to ownership, taking over an established model, brand and often existing profitability, but it comes with its own genuine risks worth understanding through the main routes available.
These are the genuine routes to acquiring a business.
Franchising as a structured acquisition route
Buying into an established franchise gives access to a proven business model, brand recognition and ongoing support, in exchange for franchise fees and ongoing royalties, and adherence to the franchisor’s specific operating standards.
This route suits someone who wants the genuine reduced risk of a proven model but is comfortable operating within someone else’s established structure and rules.
Buying an independent existing business outright
Purchasing an independent business directly gives full control and ownership of an established customer base and operations, but requires genuinely thorough due diligence on its actual financial health, reputation and reason for sale before committing.
Our guide to how to sell a business properly covers the process from the seller’s side, useful context for understanding what a genuine, well-prepared sale looks like from the buyer’s side too.
Understand the genuine due diligence required
Verifying financial statements, existing contracts, outstanding liabilities and the genuine reason the business is being sold protects a buyer from inheriting problems that aren’t visible on the surface.
Engaging a qualified accountant and legal professional for this due diligence is worth the cost relative to the risk of an under-examined acquisition.
Register the acquisition properly
Any change in business ownership needs to be properly registered and reflected through the Companies and Intellectual Property Commission, alongside updating relevant licences, tax registrations and contracts.
Our guide to whether to take on an investor covers a related ownership-structuring decision worth considering if the acquisition needs outside capital.
Frequently asked questions
What are the main routes to acquiring an existing business?
Buying into a franchise or purchasing an independent business outright, each with different risk and structure trade-offs.
What does franchising offer as an acquisition route?
A proven business model, brand recognition and support, in exchange for fees and adherence to the franchisor’s standards.
What due diligence is genuinely required before buying a business?
Verifying financial statements, existing contracts, outstanding liabilities and the genuine reason for the sale.
Should professionals be involved in an acquisition?
Yes, a qualified accountant and legal professional are worth the cost relative to the risk of an under-examined acquisition.
Does an acquisition need to be formally registered?
Yes, through the Companies and Intellectual Property Commission, alongside updating licences, tax registrations and contracts.
Further reading
Originally published in 2024. Updated September 2026 into a clearer breakdown of the genuine routes to acquiring an existing business.
