How to Buy a Business 2025/2026 (Beginner's Guide - NO BS)

Thinking of buying a business but don't know where to start? Let's cut through the noise. Essential framework from Chartered Accountant Martin Godfrey Legido.

Thinking of Buying a Business but Don't Know Where to Start?

Let's cut through the noise. If you're serious about acquiring a business — whether it's your first or you're looking to scale an existing portfolio — this guide gives you the essentials without the corporate jargon.

Step 1: Define Your Target Acquisition Mandate. Before looking at broker teasers, define your sector, turnover bracket (£250k to £20M), geographical radius, and minimum target EBITDA (£150k+).

Step 2: Stop Relying Solely on Online Brokers. Approach retiring founders directly off-market to initiate conversations before a public auction raises the price.

Step 3: Normalize Earnings like an Accountant. Strip out discretionary owner expenses, one-off non-recurring costs, and family salaries to reveal true sustainable cash flow.

Step 4: Structure Deals to Protect Cash Flow. Utilize deferred consideration so a chunk of the purchase price is paid from future profits over 2 to 3 years.

Want Martin to review a specific target company's accounts with you?

Book a complimentary 45-minute Acquisition Roadmap call to analyze normalized EBITDA, add-backs, and deal structure.