First steps in business acquisition: where to start?
Introduction
You are considering acquiring a business, but you don't know where to start? This question often comes up among acquisition candidates. The process can seem complex, especially when starting without prior experience in acquisitions.
The reality is simple: a successful acquisition begins with structured preparation. Before consulting the first listing or contacting a seller, you must clarify your project, assess your resources and understand the steps ahead.
This practical guide details the six initial steps to begin your acquisition project. You will discover how to define your objectives, calculate your financial capacity, train yourself in the basics of acquisition, and plan a realistic timeline. Each step is designed to lay solid foundations before entering the active phase of search and negotiation.
Whether you are an executive in career transition, an entrepreneur wishing to develop through external growth, or an investor looking for opportunities, these first steps are identical. Allow between 12 and 36 months for the entire process, from initial preparation to final signature.
📌 Summary (TL;DR)
Acquiring a business begins with six essential preparatory steps: clarify your motivations and skills, assess your financial capacity, train yourself and build a team of advisers, search for qualified opportunities, analyse financial documents, and plan a realistic timeline of 12 to 36 months.
Structured preparation significantly increases your chances of success and allows you to approach negotiations with confidence and method.
📚 Table of contents
Step 1: Clarify your acquisition project
Before launching into the active search for a business, take the time to define your project precisely. What are your real motivations? Are you looking for more autonomy, a career change, or the development of assets? Identify the type of business that matches your profile: sector of activity, size, geographical location.
An honest self-assessment of your strengths and limitations is essential. This initial clarification will prevent you from wasting time on unsuitable opportunities. Acquiring an existing business offers distinct advantages compared to starting one. To better understand this alternative, consult our comparison between buying a business or starting your own.
Your motivations and objectives
Ask yourself the right questions before starting your business acquisition. Why do you wish to acquire rather than remain an employee or start from scratch? What are your personal and professional objectives at 3, 5 and 10 years? What work-life balance are you looking for?
These answers will guide your choices: a stable family SME does not involve the same constraints as a growing startup. Be honest with yourself about your real priorities.
Your profile and skills
Identify your key skills: team management, business development, technical expertise, finance. Assess your sector experience and the areas where you will need to rely on others.
Determine whether a solo acquisition matches your profile or whether a partner would bring complementary skills. Acquiring with others presents advantages but also specific challenges. Discover the issues in our article on acquiring with a partner.
Step 2: Assess your financial capacity
Establish a realistic budget from the start of your project. Calculate your available personal contribution, your bank borrowing capacity, and the working capital requirements for the first months of operation.
In Switzerland, SME prices vary considerably depending on the sector and size. Banks generally require a personal contribution of 20 to 40% of the acquisition price. Understand the orders of magnitude and acceptable debt ratios.
Several sources of financing exist: traditional bank loans, vendor credit, private investors, or family offices. Prepare a solid file to maximise your chances.
Calculate your acquisition budget
Your budget must include several components. The recommended personal contribution is between 20 and 40% of the purchase price. Bank borrowing capacity will depend on your current income and the profitability of the target business.
Don't forget the ancillary costs often underestimated: due diligence, legal and tax advice, notary fees, and cash reserves for the first months. These costs generally represent 5 to 10% of the acquisition price.
Available sources of financing
The traditional bank loan remains the main source, generally covering 50 to 70% of the price. Vendor credit, where the seller finances part over several years, often facilitates the transaction.
Private investors or family offices intervene for larger amounts. Some cantons offer guarantees or subsidies to encourage business acquisition. A well-prepared file with business plan, financial forecasts and solid guarantees is essential to convince financiers.
Step 3: Train yourself and build your team
Never embark alone on a first business purchase. Acquiring basic knowledge about the acquisition process, valuation and legal aspects is essential before starting your search.
Build a trusted team: a fiduciary for financial and tax audit, a lawyer for contracts and legal due diligence, and ideally an M&A expert for valuation and negotiation.
The Leez partner network gives you access to qualified professionals throughout Switzerland. These experts are not imposed, but their support considerably reduces the risk of error.
Useful training and resources
Invest time in your training before investing money in an acquisition. Continuing education specialised in business acquisition, seminars organised by chambers of commerce, and specialised literature constitute valuable resources.
Join networks of acquirers to exchange with other entrepreneurs who have lived through this experience. These contacts will provide you with practical advice and moral support during your project.
Build your team of advisers
Each adviser plays a specific role. The fiduciary carries out the financial and tax audit, identifies accounting risks and optimises the tax structure. The lawyer secures contractual aspects, conducts legal due diligence and negotiates guarantee clauses.
The M&A expert brings their expertise in valuation and supports negotiation. These services represent a cost (5 to 10% of the acquisition price), but the return on investment is significant: avoiding a bad acquisition is worth much more.
Step 4: Search for opportunities
Searching for businesses to acquire requires a multi-channel approach. Specialised digital platforms such as Leez centralise numerous verified opportunities. Professional networks, direct approach to potential sellers, and mandates via fiduciaries constitute other effective channels.
Don't limit your search to a single channel. Multiply sources to maximise your chances of finding the opportunity that truly matches your project.
Define clear filtering criteria from the start: sector of activity, location, size (turnover, workforce), and minimum profitability. These criteria will save you valuable time.
Effective search channels
Specialised platforms offer visibility and structure. On Leez, the acquirer subscription at 250 CHF/year gives access to all published businesses with progressive confidentiality levels and secure connection tools.
Professional networks (sector associations, entrepreneur clubs) allow you to identify non-public opportunities. Direct approach to potential sellers works in certain sectors. Search mandates via M&A advisers suit larger projects.
Define your selection criteria
Create an evaluation grid with objective criteria. Sector of activity: favour areas you know or that you are passionate about. Geographical location: define your acceptable perimeter according to your personal constraints.
Turnover and number of employees determine management complexity. Minimum profitability: set an EBITDA or net margin threshold. Development potential: identify possible growth levers. This grid will help you quickly qualify each opportunity.
Step 5: Analyse and evaluate opportunities
Once opportunities are identified, begin with an initial analysis of the files. Learn to understand basic financial documents: income statement, balance sheet, cash flow statement. Identify warning signals (red flags): falling turnover, high debt, customer dependence.
Assess the consistency between the asking price and the financial reality of the business. Valuation methods will help you determine a reasonable price range. The Leez valuation tool provides an initial objective estimate.
Never rush. Take the time to analyse several files to develop your critical sense and refine your criteria.
Reading key financial documents
The income statement shows profitability: turnover, expenses, net profit. The balance sheet presents the asset position: assets, debts, equity. The cash flow statement reveals the ability to generate cash.
Monitor these indicators: CA evolution over 3-5 years, margins (gross, EBITDA, net), debt ratio, and working capital. Warning signals include: negative trends, excessive dependence on a customer or supplier, ongoing litigation, or payment delays.
Understanding valuation
Common methods include EBITDA multiples (4 to 8x depending on the sector in Switzerland), the DCF method (discounted cash flows), and asset value (net assets). Each sector has its own valuation references.
A stable industrial SME is valued differently from a growing tech startup. A professional valuation carried out by an expert will give you the arguments to negotiate calmly and avoid overpaying. It is an investment that pays for itself quickly.
Step 6: Plan your timeline
An acquisition project takes time: allow 12 to 36 months depending on complexity. The preparation phase (clarification, training, team building) takes 3 to 6 months. Active search for opportunities extends over 6 to 12 months.
Negotiation and due diligence require an additional 3 to 6 months. Finally, the post-signature transition period lasts 3 to 6 months. Patience and perseverance are essential: the best files take time to materialise.
The first 100 days after the acquisition are critical to succeed in your integration and ensure the sustainability of the business.
Average duration per phase
Preparation (3-6 months): project clarification, training, team building. Search (6-12 months): identification and initial analysis of opportunities. Negotiation and due diligence (3-6 months): offer, audits, contract finalisation. Transition (3-6 months): seller support, operational takeover.
These durations vary according to the size of the business, sector complexity, and your availability. Manage personal aspects: your current job, your family's involvement, and your financial resources during this period.
Prepare the transition phase
Anticipate the post-signature period from now. Plan for seller support over 3 to 6 months to facilitate knowledge transfer and reassure customers, suppliers and employees.
Plan your internal communication (presentation to the team, values, vision) and external (customers, partners). Identify the first necessary adjustments without disrupting the organisation. Our detailed guide on the first 100 days supports you through this critical phase.
Resources and tools to get started
To start your acquisition concretely, use this checklist: project clarification and self-assessment, assessment of your financial capacity, building your team of advisers, definition of your search criteria, and training in the basics of acquisition.
Leez provides you with practical tools: search for businesses to acquire, valuation tool, and access to the partner network. The acquirer subscription at 250 CHF/year gives you access to all opportunities.
To deepen each step, consult our complete guide to the 8 steps to a successful business acquisition.
Starting in business acquisition requires method and preparation. By clarifying your motivations, assessing your financial capacity, training yourself and surrounding yourself with the right advisers, you lay solid foundations for your project. Searching for opportunities, rigorous analysis of files and realistic planning of your timeline are all steps that transform an ambition into a concrete project.
Each acquisition is unique, but these first steps constitute the common foundation of any successful acquisition. Take the necessary time for each phase, without rushing. The quality of your preparation largely determines your chances of success.
Ready to take action? Explore now the businesses available for acquisition on Leez and filter them according to your criteria. You can also consult our network of experts to support you in your approach.
