Quick answer: To buy an existing business in Singapore, set your criteria, line up funding, shortlist listings, sign an NDA, carry out due diligence on the accounts, ACRA records, lease and licences, agree a share or asset deal, then complete the transfer with a planned handover.
Buying an existing business can get you running faster than starting from scratch. You take over customers, staff, suppliers and a track record from day one. But a good purchase depends on asking the right questions before you sign.
Here is a step-by-step guide for buyers looking at SMEs in Singapore.
1. Be clear about what you want to buy
Start with your own criteria: industry, location, size, budget and how hands-on you want to be. A café you run yourself is a very different purchase from a logistics company with a management team in place.
Writing this down saves time. It helps you filter listings quickly and explain to sellers why you are a serious buyer.
2. Sort out your funding early
Know how much you can put in yourself and how much you need to borrow. Banks and other lenders will want to see the business’s accounts and your own plan for running it.
Sellers take buyers more seriously when funding is already lined up. Speak to your bank or a financing advisor before you start making offers.
3. Shortlist and make first contact
Browse listings and shortlist businesses that match your criteria. On first contact, keep it simple: introduce yourself, say what interests you about the business, and ask what information the seller can share.
Many sellers keep their identity confidential at first. Expect to sign a non-disclosure agreement (NDA) before you receive detailed figures.
4. Do your due diligence
Due diligence is where you check that the business is what it appears to be. In Singapore, that usually means reviewing:
- Two to three years of financial statements, management accounts, bank statements and GST filings (if registered)
- The company’s ACRA bizfile profile, including directors, shareholders and filing history
- The lease: remaining tenure, renewal terms and whether the landlord must consent to a change of owner
- Licences and permits, and whether each one can be transferred
- Staff list, employment terms and any work pass holders
- Key customer, supplier and franchise contracts
Ask for explanations of anything that does not add up. An accountant and a lawyer are worth paying for at this stage.
5. Agree on the structure and price
You will usually buy either the company’s shares (a share sale) or selected assets of the business (an asset sale). Each has different implications for liabilities, contracts, staff and tax, so take advice before you agree on terms. Our guide Share Sale vs Asset Sale explains the differences.
Price is a negotiation between you and the seller. An independent valuer or broker can help you judge whether the asking price is reasonable.
6. Sign, transfer and hand over
Once terms are agreed, your lawyer will prepare the sale and purchase agreement. Then come the practical steps: transferring shares or assets, updating ACRA records, transferring or re-applying for licences, and assigning the lease.
Agree a handover period with the seller. A few weeks of support on suppliers, staff and daily operations makes the transition much smoother.
Find your next business
BizSales.sg lists SMEs for sale across Singapore, from F&B and retail to logistics, corporate services and franchises. Browse businesses for sale on BizSales.sg, or tell sellers what you are looking for on our Buyers Wanted page.
Need professional help? The BizSales Advisor Directory lists brokers, lawyers, accountants, valuers and financing advisors.
Frequently asked questions
How long does it take to buy a business in Singapore?
Small deals can complete in a few weeks once due diligence is done. Larger deals, or those needing landlord or licence approvals, often take two to three months or more.
Do I need a lawyer to buy a business?
It is strongly recommended. A lawyer prepares or reviews the sale and purchase agreement and checks the lease, licences and liabilities.
Can a foreigner buy a business in Singapore?
Foreigners can generally own Singapore companies, but running the business may need a local resident director and the right work pass. Ask a corporate secretary about your situation.
Where can I find businesses for sale in Singapore?
BizSales.sg lists businesses for sale directly from owners, from F&B and retail to logistics and corporate services. You can also post what you want on the Buyers Wanted page.
Related guides
- Buying an existing business vs starting from scratch in Singapore
- Due diligence checklist for buying a Singapore business
- Buying a Singapore Shelf Company: Costs, What You Actually Get, and 7 Checks Before You Sign
- Franchise opportunities in Singapore — a first-time buyer’s guide
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