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Buying a business

How to buy a business that isn't for sale: finding and approaching the owner

You can buy a business that isn't for sale. Where off-market businesses come from, how to approach the owner and what to have ready before you talk price.

Reading time 5 min read
Category Business guides
Written by The bizbritain team
You can buy a business that isn't for sale. Many owners near retirement have no plan for selling, so a polite, direct approach can start a conversation long before any listing would. To be taken seriously, find the right businesses, approach the owner with care and have your finance ready before you talk price.
This guide is for someone who wants to buy an established business and has found few good ones on the market. It covers where off-market businesses come from, how to make the first approach and what to line up first.

Section 01

Can you buy a business that isn't for sale?

Yes. A business only appears on a listing site when its owner decides to sell and hires someone to market it. Plenty of owners never get that far.
Some have not thought about what happens when they stop. Others would sell to the right person but do not want to advertise it. Staff, customers and competitors could hear about it. A buyer who turns up at the right moment can be a welcome answer.
An off-market deal is not automatically a bargain. You may face less competition from other buyers. But an owner who has not taken advice may also have a price in mind that the accounts cannot support.

Section 02

Where off-market businesses come from

The best leads usually come from people who already know the owners. Start with the world you know.

  1. Your own sector

    Lenders like buyers with experience in the industry. Owners like them too. Think about the firms you already know through work.

  2. Suppliers and customers

    A supplier who visits twenty businesses a month often hears first when an owner is thinking of stepping back.

  3. Accountants and solicitors

    Local advisers know which clients are planning to retire. Ask them to pass on your details, rather than asking for names.

  4. Companies House

    The public register shows a company's directors, the month and year they were born, and the accounts it has filed. That can help you build a shortlist of long-established firms.

Small companies often file only short accounts, so the register will not tell you how profitable a business is. Treat it as a list of names to research, not a list of businesses for sale.

Section 03

How to make the first approach

An owner who has not decided to sell needs time. A careful first approach is more likely to get a reply than an offer out of the blue.
Step 1

Write a short, personal letter

Say who you are, why you admire the business and that you would like to talk about its future. Keep it to one page. Do not mention a price.

Step 2

Meet and listen

Ask what the owner wants. Many care about their staff, their customers and their name as much as the money.

What would a good handover look like for you?

Step 3

Ask for the numbers

If the owner is open to selling, offer to sign a confidentiality agreement. Then ask for the last three years of accounts and the current year's figures.

Myth 01

“If they haven't advertised it, they'll take a low offer”

An owner who was not planning to sell has no reason to accept less than the business is worth.

A fair offer, explained clearly, does more for you than a low one. It shows you have read the accounts and that you can pay.

Section 04

Getting your finance ready before you talk price

An owner wants to know you can complete. Before you discuss a price, know how you would fund the deal.
  • How much of your own money can you put in? Most acquisition lenders expect the buyer to contribute part of the price.
  • What experience do you bring? Lenders look closely at whether you can run this kind of business.
  • Would the owner leave some money in the deal? A seller paid partly later, or through an earn-out, can reduce what you need to borrow.
If the owner is open to being paid in stages, our guide to how an earn-out works when you buy from a retiring owner explains the terms to agree.
Speaking to a broker early helps you make an offer you can fund. A broker who arranges business acquisition financing can look at the deal across a wider range of lenders. On advisory deals we take no commission from lenders, and you pay us nothing unless a lender on our panel issues an agreement in principle.
Not sure where you stand? Our acquisition finance readiness checker shows what to prepare before you approach an owner.

This guide is general information, not financial advice. Applications are subject to status, affordability and lender criteria.

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