Buying a business in 2026? Avoid these six common mistakes

Buying an established and profitable business can be a smart, strategic move. You gain a known brand, loyal customers, experienced staff and a business model that is proven to work – providing you with cash flow from day one. Many people see it as a shortcut to successful business ownership. And it can be, provided you carry out thorough due diligence to ensure you’re buying the right business.

With interest rates expected to fall and inflation continuing to stabilise, 2026 could be a good year to buy. But remember, purchasing a profitable business is a huge financial commitment. Without the right support and guidance, a bad purchase decision could become an expensive and stressful mistake.

At Hibberts Solicitors, we’ve been helping individuals make smart business decisions since 1799. With offices across Cheshire and Shropshire, our specialist corporate and commercial solicitors can help you review, structure, and protect every stage of your business purchase. In this article, we reveal six of the most common mistakes buyers should avoid when buying a UK business.

Six common mistakes to avoid when buying a business UK

Not carrying out proper due diligence

Due diligence helps you understand exactly what you’re buying. When carried out properly, it reveals how profitable a business really is, whether the price is fair and any potential risks.

When carrying out due diligence, you should review the following very carefully:

• Financial statements;
• Commercial contracts;
• Outstanding debts and liabilities;
• Employee contracts;
• Commercial leases;
• Regulatory compliance;
• Intellectual property rights;
• Ongoing disputes and claims; and
• Shareholder agreements

At Hibberts, our commercial solicitors in Nantwich can help you carry out thorough legal due diligence to ensure no stone is left unturned. We will help you review contracts, leases and outstanding liabilities to identify any risks before you proceed.

Buying a business in an industry you have no experience in

When you spot an exciting opportunity, it can be tempting to seize it, even if you don’t have any experience in the industry. However, it’s important to avoid making emotional investment decisions. Running a successful business takes more than just enthusiasm. Every industry has its own regulations, risks and operational challenges. Entering the market with no prior experience or knowledge puts you at a significant disadvantage.

Ignoring red flags when buying a business

Red flags often show up during due diligence, but they may not be obvious if you’ve never bought a business before. Any inconsistencies, irregularities or missing documentation should ring alarm bells and prompt further investigation.

Common red flags include:

• Undisclosed debts or liabilities;
• Missing or outdated employment contracts;
• Weak intellectual property protection or unregistered trademarks;
• Problematic commercial leases;
• Shareholder disputes; and
• Poor compliance or regulatory breaches.

Ignoring these warning signs can lead to unexpected problems once you take over. Our team of specialist corporate and commercial solicitors here at Hibberts can help you spot the red flags that you may otherwise miss.

Underestimating how much working capital is required

Many buyers focus so heavily on the purchase price that they forget to work out how much working capital they need to cover day-to-day operational expenses once they take over the business.

This is a huge mistake, as working capital covers the cost of important ongoing contractual obligations, including liabilities, outstanding debts, lease commitments and employee wages. Consider negotiating to include some operating capital as part of the deal for a smoother transition.

Overpaying

It’s easy to overpay if due diligence hasn’t been carried out properly and you’re relying solely on the seller’s valuation. Due diligence should uncover any risks or legal issues within the business, which can then be used to negotiate a price that reflects the company’s true value. Always be prepared to negotiate and don’t feel pressured to accept the first figure given.

Our team of corporate and commercial solicitors here at Hibberts Solicitors can help you identify issues that impact the business’s value and then negotiate fairer terms to ensure you get the best deal on your purchase.

Not seeking professional guidance

Buying a business is likely to be one of the biggest commitments you make in your lifetime – financially, legally and operationally – so don’t risk doing it alone!

If you’re planning to purchase a business in 2026, contact our team here at Hibberts Solicitors by calling 01270 624 225 or emailing enquiries@hibberts.com. Our team of Cheshire solicitors are here to guide you through the acquisition process, helping you to avoid expensive mistakes and invest with confidence.