Buying a small business in the UK: 7 things to check before you sign

Buying an existing business can be a faster route to self-employment than starting from scratch — but only if you check the right things first. Here's a practical checklist before you commit.

1. Ask for real accounts, not just the seller's word

Request at least 2–3 years of accounts if the business has traded that long, or recent bank statements and till (Z-read) reports if it's newer. Compare the reported weekly takings against bank deposits over a few months.

2. Read the lease carefully — or get a solicitor to

How many years are left? Can it be assigned to you? Is there a rent review coming up? Are there repair obligations (FRI — full repairing and insuring leases can leave you liable for the whole building's condition)? A commercial property solicitor is worth the fee here.

3. Confirm licences transfer — or budget time to reapply

Premises and personal licences usually don't transfer automatically to a new owner. Check with the local council what the unit is currently licensed for, and how long a new application takes.

4. Check the equipment actually works

Ask when fridges, ovens, extraction and POS systems were last serviced. A quote to replace a failed walk-in fridge or extraction system can easily wipe out a "good deal" price difference.

5. Ask why they're selling — and verify it

Retirement, relocation and burnout are common, honest reasons. A sudden drop in nearby footfall, a new competitor, or an unresolved dispute with the landlord are things you want to know about before you sign, not after.

6. Understand what happens to staff

Existing staff are usually protected under TUPE (Transfer of Undertakings) rules when a business changes hands — their contracts, pay and continuous service normally transfer with the business. Get advice if you plan to change staffing after taking over.

7. Get everything in writing, through a solicitor

Verbal promises about takings, included equipment or landlord goodwill don't hold up later. A solicitor experienced in business sales (not just general conveyancing) will draw up a proper asset purchase or business transfer agreement.