How do I buy a business?
Short Answer
Define your acquisition thesis, build a target list, approach owners, agree heads of terms, run due diligence, finance and structure the deal, then complete and integrate it with a 100-day plan.
Full Explanation
Buying a business follows a repeatable path, and the discipline you bring to each step decides whether you buy well.
Start with a thesis: what kind of business you want to buy and why, defined by sector, size, geography and strategic fit. Build and work a pipeline of targets through advisers and direct, off-market outreach. When you find a fit, agree heads of terms — price, structure and exclusivity — then run due diligence across financial, legal, commercial, tax and, crucially, the intangible assets that make up most of the value. Arrange finance, which usually blends equity, bank debt, asset-based or IP-backed lending and often vendor finance. Structure the deal in the sale and purchase agreement, complete, and then integrate with a 100-day plan so you realise the value you paid for.
The value you are buying is mostly intangible and largely invisible on the seller's accounts, so seeing it clearly is the edge. See the buy a business hub and grow by acquisition, and see Opagio Intangibles in action.
Related Glossary Terms
Related Questions
Combine sources into a capital stack: your equity, senior bank debt, asset-based lending, IP-backed lending against intangible assets, and vendor fina...
You acquire a platform business, then add a series of smaller bolt-on acquisitions to it over time, compounding scale and, often, re-rating the enlarg...
Define clear acquisition criteria, then source targets through brokers and advisers and, ideally, direct off-market outreach that builds proprietary d...
Further Reading
Want to see these concepts in action?
Take the free intangible asset assessment to see how these concepts apply to your business.