How to pay less when buying a business?

Buying a business? It sounds like a logical step for any entrepreneur who wants to accelerate their growth—to enter a new market, utilize an existing team, and build on an established customer base. However, Bulgarian investors rarely take this route, especially when it comes to companies abroad.
The reason is often simple—such deals seem complex, risky, and expensive.

While the seller usually views their business with emotion and attachment, the buyer thinks pragmatically—it all comes down to price. And that, as it turns out, is subject to more influence than many people assume. Here are a few real ways to reduce it even before signing the contract.

1. Avoid competitive bidding

One of the main mistakes buyers make is participating in auctions organized by the seller. In such situations, competition between candidates automatically raises the price and limits the possibility of individual negotiation.

Whenever possible, seek direct contact with the seller and conduct negotiations outside of an auction environment. This gives you more control over the pace, arguments, and potential discounts.

2. Use due diligence as a tool for adjustment

Once you have agreed on the basic parameters, do not rush to accept the price as final. The next step is due diligence—a detailed review of the financial and legal aspects of the company.

This phase often reveals inconsistencies or omissions that can serve as an argument for revising the price. Similar to a technical inspection of a car before purchase, there is always something to be found – and this can become valuable leverage in negotiations.

3. Monitor working capital

When purchasing an existing business, it is important to pay attention to the level of working capital that the company will have at the time of transfer. This is the real “fuel tank” of the business—the funds available for current operations.

Since this indicator changes daily, it can be used as a flexible bargaining tool. Through careful analysis and expert support, you can find arguments for adjusting the amount you will actually pay.

4. Negotiate the terms, not just the price

Sometimes you don’t need to reduce the value of the deal itself to get a better position. Deferred payment, deferred transfer, or contingent payments linked to future results can make the purchase more affordable and reduce risk.

However, it is important to maintain a balance—focusing too much on price can cause you to overlook hidden liabilities or operational issues that will arise after the deal.

Experienced investors often say that profits are made when buying, not when selling.
Good research, strategic thinking, and clear judgment are the buyer’s best tools.
By following these principles, you will not only reduce the price, but also increase the chances of the deal turning into a real investment opportunity.

TPA Bulgaria

+359 2 981 66 45/46/47

office@tpa-group.bg

128, G.S. Rakovski str, floor 2

1000 Sofia