What to consider when purchasing an established business

November, 2021

Buying a company that's already established has a lot of benefits. In fact, it can be a lot easier and quicker to purchase an established business than it is to start a business from scratch.

However, this doesn’t mean that there isn’t a lot to consider when finding the perfect established business that is right for you! The good news is that we have created a helpful guide outlining what you will need to consider when purchasing an established business so that you can make a well-informed decision.  

But first and foremost, what are the advantages and disadvantages of buying an established business?

There are many advantages that come hand in hand with buying an established business. But as with any big decision, it's also important that you consider and weigh up the disadvantages too as these will help you to gauge whether or not this is the best option for you.


  • The vast majority of the work involved in getting a business off the ground has already been done. This is often one of the most difficult tasks of starting up a business.
  • The business already has a proven track record and client base.
  • Lenders are more likely to provide finance to businesses that are already established.
  • Demand for the product or service the business offers has already been proven.
  • With an established customer base comes a more reliable income.
  • The brand will already have a reputation that you can build on.
  • A business plan should have already been created and submitted during the lifespan of the business.
  • You may already have a workforce in place.


  • When purchasing an established business, it’s highly likely that you will have to invest a larger amount of money upfront.
  • You will also have to ensure that you factor in professional fees for solicitors, surveyors and accountants within your budgeting.
  • If the business has been neglected, you will need to be willing and prepared to put a lot of hard work into building it back up again. After all, reputation is everything in the world of business.
  • Cash flow might be an issue in the early days.
  • Current staff will be transferred under TUPE.

What else will you need to consider?

As well as the above, it’s also important to consider whether not the existing company will allow you to achieve what you want to. Think about how you see the business growing in the future. You should also ensure that the money you are planning to invest will result in a healthy return on investment.

Running any business is not for the faint-hearted and requires a lot of time and dedication. You must be driven, disciplined and committed to your dream. After all, you will only get out of your business what you are prepared to put in.

Finally, you should always look at the history of the business, its location, as well as its current performance. Remember, don’t be afraid to touch base with the vendor, as well as the business' existing customers and suppliers to understand their perspective of the business.

Why choose CCL?

Here at CCL, we specialise in selling business properties throughout Scotland and the north of England. Discover the range of unique properties we have available to suit every taste and requirement and enjoy a smooth and hassle-free service from beginning to end including valuation surveys, commercial funding and conveyancing.

We always ensure that you, the customer, are at the heart of everything we do. Get in touch today, and find out how we can help you discover your next commercial property.

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