What should you be aware of? What steps should you take to ensure the process goes as smoothly as possible? In this article, we explore the challenges and advantages of taking over a business and provide a practical step-by-step guide for a successful start.
"}},{"componentType":"sectionTitle","title":"Advantages of acquiring a business"},{"componentType":"paragraph","richBody":{"value":"Acquiring an existing business often comes with several advantages over starting one from scratch:
The biggest challenge, however, is usually financing. For most business starters, it's not feasible to acquire a business without additional financial resources, which can make the barrier to entry higher than starting from scratch.
"}},{"componentType":"sectionTitle","title":"Step-by-step guide to acquire a new business"},{"componentType":"paragraph","richBody":{"value":"Step 1: Choose the right type of acquisition
There are different ways to acquire a business, so it’s important to first determine which method best suits your situation.
Step 2: Gather as much information as possible
Make sure you get a clear picture of the business you want to acquire. A good starting point is, of course, the internet. Begin with online research and check the company’s social media presence. Be sure to review the company’s financial statements to assess its financial health. Schedule multiple meetings with the current owners to get a full understanding. Don’t forget to request important certificates and permits as well.
Step 3: Create a business plan
Even though you’re acquiring an existing business, having your own business plan is essential. This plan will help you solidify your vision and provide a roadmap for the future. Check out our tips for drafting a strong business plan.
Step 4: Decide what exactly you want to acquire
When acquiring a business, there are two main options:
Whether you opt for a share or asset transfer, in most cases, the employees will also be transferred. This means you’ll need to honour existing employment agreements, including wages, seniority, end-of-year bonuses, and holiday pay. However, in some cases, you can specify in the acquisition agreement that you do not wish to take on the staff. In that case, it becomes the seller’s responsibility to handle redundancies before the acquisition. Importantly, the seller cannot use the acquisition as grounds for dismissal.
Step 5: Draft a letter of intent
Before signing the official acquisition contract, a letter of intent is often drawn up. This document outlines the key terms of the acquisition and serves as a basis for final negotiations.
Step 6: Conduct a due diligence investigation
Before acquiring a business, you must carry out a full audit of the company with the help of an accountant or business lawyer. They will conduct a due diligence investigation, thoroughly reviewing all key aspects of the business:
A well-executed due diligence investigation ensures that you’re acquiring a healthy business and helps prevent unwelcome surprises after the acquisition.
Step 7: Negotiate the acquisition price
The acquisition price is determined by several factors, including:
It may be beneficial to hire an external expert to provide an independent valuation of the business.
Step 8: Sign the acquisition contract
Once all negotiations are finalised, you can sign the official acquisition contract. This document specifies which assets and liabilities you are taking on and under what conditions the acquisition will take place. It’s advisable to consult a lawyer or notary to avoid any unpleasant surprises.
"}},{"componentType":"highlight","richBody":{"value":"Discover the ING Starter Package, bundling everything new entrepreneurs, self-employed professionals, and companies under 18 months old need into one package.Do you have questions or need more information? Dive into ING’s starter tips to smartly launch your business.
"},"title":"Want to start or acquire a business worry-free?"}]},"hasMacro":false,"id":"d0be38de-c0e9-4505-beaf-1e088bc3b744","legalZone":{"flexComponents":[{"componentType":"paragraph","richBody":{"value":"This article is for informative purposes only and the information set out herein may change with time. We therefore recommend that you always reference specific regulations and requirements with the competent authorities for the latest information. Additionally, we advise that you seek professional advice on a case-by-case basis before making any decisions. Please note that ING Belgium SA/NV cannot be held liable for any decision taken on the basis of the information provided.
"},"title":"Disclaimer"}]},"localeString":"en-GB","mainHeaderZone":{"backLink":{"textLink":{"text":"Starting your business","url":"/en/business/starters"}},"componentType":"editorialHeader","coreHeader":{"body":"Taking over an existing business can be a tempting option for aspiring entrepreneurs who want to step straight into a fully operational company. This is particularly appealing with small or family-run businesses, as it can offer benefits such as an established customer base, brand recognition, and immediate revenue. However, the process of acquiring a business can be complex and requires careful planning.","title":"How to acquire a business as a new entrepreneur?"},"date":"2024-10-09","readingTime":0},"publishDate":"2025-04-04T12:07:15.913+02:00"}}