Read the news, and it might seem to be all economic doom and gloom, but that’s not dampening how many of us are looking to throw off the shackles of employment to start our own businesses.
According to a study in late 2025, one in ten people said they wanted to start a business in 2026. But there’s no denying the hard work and grit that go into doing that, so why not buy an existing business and get a head start instead?
If you’re thinking about going down this road, here’s what you need to know about the timeline of buying a small business.
The timeline of buying a small business
In terms of the timeline, there’s no set timeframe for buying a small business. The process differs for everyone and depends largely on the work of the buyer and seller.
Today, you’re looking at 5.64 million small firms in the UK, which is more than 99% of all businesses, so there’s no shortage of opportunities. If you’re looking for an average, though, expect the process to take six to twelve months.
The steps you’ll go through include:
- Planning – Defining your goals, budget, and target industry. You’ll also start building your team, including contacting solicitors and accountants who’ve been through the acquisitions process before.
- Searching – Next, you’ll begin the process of exploring what businesses are on the market today.
- Screening – Once you’ve built a shortlist of targets, you’ll reach out to each owner, discuss your intentions, and review some preliminary financial information. If you’re happy to proceed, you’ll sign a Non-Disclosure Agreement (NDA).
- Make an Offer – If you like what you see, you’ll make a preliminary offer and negotiate Heads of Terms and exclusivity. Note that this doesn’t mean you have to hand over any money at this stage.
- Due Diligence – Due diligence is essentially the verification process. That’s where professionals are essential, as they’ll comb through the finances, legal aspects, liabilities, and commercial/operational records.
- Completion – Assuming you’ve done your due diligence and everything looks good, you’ll draft the final agreement with your solicitor, sign the contract, and become the official new owner of your very own small business.
Of course, there are potential snags along the way. It’s not uncommon for deals to fall through during the critical due diligence stage. Moreover, if you need financing, you’ll also need to take the time to finalise any loans. About 45% of small UK firms use external financing for one purpose or another, so it’s a common way of completing these transactions.
Enquire About Buying a Small Business
Does buying a small business take less time than buying a larger one?
Buying a small business is much faster and far less work than buying a larger one, simply because of the complexity involved. Larger companies, especially those operating across multiple jurisdictions, must navigate highly intricate structures, setups, operations, and financial arrangements.
Two aspects you’re also not worrying about with a small firm are regulatory approvals and an array of investors/shareholders. In short, every step in the buying timeline is more extended if you’re dealing with a larger company.
How long does it take to acquire a small business?
Expect to take six to twelve months to buy a small business from start to finish. Add more time if you’re also trying to secure third-party investment. However, there are no firm timelines for buying a small business because there are so many factors that can cause delays, including:
- Finding appropriate targets to buy.
- Dealing with bad-faith owners.
- Handling tough negotiators.
- Issues raised during the due diligence process.
- Difficulties securing the financing you need.
Professionals can certainly help you spot potential potholes on the road to buying a small company. Still, they can only provide general advice on how long everything might take because it’s ultimately the buyer and seller who have the biggest impact on the process.
Learn more about how and where to buy a small business.
How to streamline the process of buying a small business
Streamlining the process of buying a small business is about being organised, hiring the right people, and also knowing when to walk away from a deal. Although there are actions you can take, the goal should never be to take shortcuts or achieve the fastest purchase possible.
Don’t make the mistake of cutting corners on your due diligence, or any other part of the process, because this will hurt your ability to prosper later. So, with that in mind, what are the most common problem areas that you can target?
Work with a specialised broker
Working with a broker experienced in buying and selling small firms doesn’t just give you access to an expert but also deals you wouldn’t ordinarily find. Many owners looking to sell don’t immediately list their businesses publicly. Instead, they rely on brokers to conduct deals, otherwise known as off-market transactions.
Gain exclusivity
Heads of Terms agreements express your initial interest, but what they also do is allow you to acquire exclusivity. Binding the seller to exclusivity early prevents them from negotiating with others for a limited period, which forms the foundation for a faster buying timeline.
Create a professional team
You don’t have to use white-collar professionals to help with your deal, but you should anyway. Engaging solicitors and accountants with specific experience in these transactions helps prevent experience-related delays. Remember, this is a legal transaction, and things can get complex fast, especially if tax issues or share transfers come into play.
Take your time on due diligence
Due diligence is the most essential part of the process because it’s your opportunity to explore the bones of the business. It’s also your last chance to uncover anything that could impact the ability to make the business successful.
Whilst it’s tempting to rush, slowing down and using a focused checklist and virtual data rooms to scrutinise businesses is an investment that will pay dividends in the future.
Walk away
It might seem counterintuitive, but knowing when to walk away is an essential skill that will serve you well. If a deal seems too good to be true, the owner is being stubborn, or something flags up during due diligence, these are all reasons to walk away and explore other options.
Proceeding with a bad deal wastes your time at best, but it could also hamstring your new company before you even get started. Sometimes, it’s best to go back to searching for other options.
If you’re ready to buy a small business and join the ranks of the self-employed, Cogogo makes it easy for you to find the latest business opportunities in your area. To find out more, look for small businesses for sale on our platform now, or get in touch to discuss your options.
