Buying an existing business, rather than starting from nothing, skips the hardest early phase of proving a concept and building a first customer base, but it comes with its own risks: inherited problems, overstated value, or a business that only worked because of the departing owner’s personal relationships. Knowing where to look is only the first step.
These are the places to search, and what to check once you find something promising.
Where businesses for sale are actually listed
Dedicated business-for-sale marketplaces and broker listings are the most direct route, though the range of businesses listed varies considerably by sector and size. Business brokers, particularly for larger transactions, can also surface opportunities not publicly advertised.
Networking directly within a specific industry, accountants, suppliers and industry associations often know of an owner considering selling before it’s ever publicly listed, which can mean less competition for a good opportunity.
Understand why the owner is actually selling
Retirement, wanting to pursue something else, or genuine growth beyond the current owner’s capacity are all reasonable, low-risk reasons to sell. A business struggling with declining revenue, an unresolved dispute, or a departing key relationship the business depends on is a different, higher-risk situation.
Ask directly, and verify the answer against the business’s actual financial trend rather than accepting the stated reason at face value.
Do genuine due diligence before agreeing a price
Review financial statements over several years, not just the most recent one, and understand whether revenue and profit trends are genuinely improving, flat or declining. A single strong year presented without context can mask an underlying decline.
Confirm the business’s registration and compliance standing with the Companies and Intellectual Property Commission, and check for any outstanding liabilities, disputes or contracts that will transfer with the sale.
Get the transaction structured and advised properly
Whether the purchase is structured as buying the company itself or only its assets has significant tax and liability implications, and this decision should be made with a qualified accountant or attorney rather than assumed.
A properly drafted sale agreement, covering warranties about the business’s condition and what happens if something undisclosed emerges after the sale, protects the buyer far more than a handshake and a set of financial statements.
Frequently asked questions
Where can I find a business for sale?
Dedicated business-for-sale marketplaces, broker listings, and direct networking within a specific industry through accountants and suppliers.
Why does the seller’s reason for selling matter?
It signals risk. Retirement or growth beyond capacity are lower-risk reasons; declining revenue or an unresolved dispute are higher-risk.
What should be checked in due diligence?
Financial statements over several years, registration and compliance standing, and any outstanding liabilities, disputes or transferring contracts.
Does it matter whether you buy the company or just its assets?
Yes, significantly, for tax and liability purposes. This decision should be made with a qualified accountant or attorney.
What protects a buyer beyond the financial statements?
A properly drafted sale agreement covering warranties about the business’s condition and what happens if something undisclosed emerges later.
