It is important to clarify that this article focuses exclusively on the sale of micro and small businesses with annual turnover not exceeding USD 500,000. To make the examples easier to follow, assume we are talking about restaurants, beauty salons, or any other straightforward offline business.
Market Realities and a Bit of Statistics
At present, there is a strong trend toward promoting entrepreneurship and encouraging people to start their own businesses. This topic has been discussed extensively, so there is little need to revisit it in detail. However, an important question remains for people with limited or no business experience:
Should you start a business from scratch or buy an existing one?
Buying a ready-made business comes with both clear advantages and disadvantages.
Advantages of Buying a Ready-Made Business
First, you save time on the startup phase. In most cases, you acquire a fully operational business with processes already in place, an existing customer base, and established financial performance.
Second, buying an existing business can actually save money. You clearly understand what you are paying for and can estimate the return on your investment (ROI depends largely on your own management decisions). You gain a more realistic understanding of how the business operates and what level of expenses it requires.
If you have experience in a particular industry, acquiring a ready-made business can be a strategic move. For example, if you already own a chain of four restaurants and fully understand the operational processes, you may identify a business where the current owner is utilizing only 60% of its potential. By acquiring such a business and implementing your own best practices, you can significantly improve performance.
Statistics show that the survival rate of ready-made businesses is nearly 50% higher compared to businesses started from scratch.
In addition, the previous owner typically provides operational support after the sale. This is standard practice and especially important for first-time buyers. Do not hesitate to ask for guidance — more than 90% of sellers are willing to support the buyer during the transition period.
Disadvantages of Buying an Opearating Business
The market for buying and selling ready-made businesses in Ukraine is still at a formative stage.
There is a high level of fraud on the seller side. A typical scenario is when a restaurant fails to gain traction and the owner decides to sell it. Buyers often lack the knowledge required to properly assess and verify the business before purchasing it.
Sellers frequently do not know how to value a business properly. In many cases, valuation logic boils down to: “We invested X and want to receive Y simply because we want that amount.” When asked where exactly the investment went, common answers include “renovation, marketing, equipment, development.” Buyers should be cautious: if investments cannot be confirmed with invoices or documentation, they are merely subjective assumptions.
As soon as business owners hear stories about selling a business and earning ten times more profit in a single deal within one month, the number of high-quality, solid offers decreases significantly.
Ukrainian legislation does not provide a standardized official contract for selling a ready-made business. Many transactions are conducted using informal agreements, which are legally risky and unsafe for both parties.
Ironically, demand from buyers significantly exceeds supply from sellers. A genuinely strong business can be sold within a week, while sale timelines for other businesses may range from one month to over a year, depending on price and quality.
What Business Owners Should Do to Sell Without Costly Mistakes
For sellers, the process is generally simpler than for buyers and carries less moral and legal responsibility — especially when informal agreements are involved, where courts offer little protection.
Seller Checklist
- Evaluate your business before sale.
- Prepare and package the business for sale.
- List the business on specialized platforms and distribute information to potential buyers.
- Filter out unqualified or non-solvent buyers.
- Meet with buyers and facilitate due diligence.
- Legally transfer ownership to the new owner.
Each of these steps can be broken down into dozens of sub-steps. However, one of the most critical topics involves business brokers and brokerage companies.
Working with Brokerage Firms and Private Brokers
Imagine you have prepared your business for sale. Within days, a broker from “ABC Consulting” calls you claiming they already have a buyer. Excitement builds — but after a month or more, reality proves less optimistic.
Why deals often fail:
- Brokerage firms receive a high volume of listings daily (as seen on the InVenture “Businesses for Sale” section).
- Due to workload, they cannot give sufficient attention to each listing.
- Many brokers lack competence and may discourage buyers from pursuing your business.
- Some brokers claim they do not charge buyers but embed high commissions into inflated asking prices.
- Brokerage activity in Ukraine is not licensed, unlike in the U.S.
- Many brokers lack proper legal expertise to structure deals correctly.
- Sales staff often lack deep understanding of individual businesses, slowing transactions.
- Less than 20% of transactions are broker-led.
- Most brokerage firms are Kyiv-based, making regional expertise scarce.
The good news is that a competent broker can significantly increase the chances of a successful transaction. The challenge is choosing the right one.
You may also sell your business independently — the decision and its consequences are yours.
How to Value a Business Before Sale or Purchase
In practice, Ukrainian business valuation often follows a simple logic: “We want this price because that’s what we want.” Sometimes sellers add emotional factors such as time and effort invested.
In reality, valuation should be based on payback periods and net profit. A typical benchmark is a 12-month payback, although every case is negotiable.
Example:
Monthly net profit of UAH 100,000 × 12 months = UAH 1,200,000
-
value of tangible and intangible assets
= approximate business value.
How to Buy a Business and Protect Yourself from Fraud
Buyers face higher risks for several reasons:
- They risk their own capital.
- High-quality offers sell quickly, leaving weaker options.
- There is a risk of acquiring a loss-making or debt-laden business.
- Buyers may not know the true value of the business.
- Lack of post-sale support from sellers.
- Inadequate due diligence by brokers.
- Risk of losing lease agreements.
- Poor legal structuring may result in penalties.
Buyer Due Diligence Checklist
- Ask the same questions multiple times using different wording.
- Request financial proof (bank statements, accounting records).
- Check outstanding liabilities.
- Negotiate lease terms with the landlord.
- Verify customer traffic with seller consent.
- Transfer the business to your legal entity.
Failure to conduct proper due diligence often results in severe losses.
Summary
Buying or selling a ready-made business in Ukraine is entirely possible, but market nuances must be understood. Both parties benefit from working with experienced professionals and avoiding informal agreements.
Safe transactions require preparation, verification, transparency, and professional support. This article covers only a fraction of what parties should know when entering such deals.
Selling a ready-made business 2026. How to sell a business in Ukraine? What sellers need to know. Buying a ready-made business. Business sale guide. Business valuation in Ukraine. Finding a buyer. Due diligence. Legal aspects. Business brokers. Preparing a business for sale. Business deal Ukraine. Business pricing. Investment in ready-made businesses. Selling a company effectively. Avoiding mistakes. Buyer advice.
