Your budget should allow for more than the purchase price. Consider working capital, professional fees, finance costs, stock and other settlement expenses. The amount required depends on the business and how the acquisition is funded.

Consider its maintainable earnings, assets, risks, growth prospects, industry and market conditions. An independent valuation or financial assessment can help you evaluate whether the asking price is commercially reasonable.

Depending on availability, examine financial statements, tax returns, sales records, expenses, cash flow, working capital and any adjustments to earnings. Your accountant should help verify the figures and assess whether the business can support your financial objectives.

Due diligence is the investigation of financial, legal, operational and commercial matters before completing a purchase. It may cover customer concentration, staff, contracts, licences, leases, equipment and potential liabilities. Independent professional advice is important.

Finance may be available from banks or specialist lenders, depending on your circumstances and the business being purchased. Some transactions also involve vendor finance where the seller agrees. Funding conditions vary and lending approval is not guaranteed. Obtain independent finance advice before proceeding.

Independent legal and accounting advice is strongly recommended. Your advisers can review purchase contracts, financial information, transaction structure, tax implications and conditions before you commit to the purchase.

Possibly, depending on the business model, existing management team and level of owner involvement. Before purchasing, assess the time commitment, staffing requirements, management capability and whether the business can operate effectively without your daily presence.