Define your criteria
The acquirers who close are the ones with a written, narrow brief. 'Any profitable business' is not a strategy — it's how investors waste two years looking at deals that were never the right fit.
What this step covers
- Sector, geography, revenue band, and EBITDA range you'll actually pursue.
- Involvement level: hands-on operator, board oversight, or fully passive.
- Deal-breakers (compliance, customer concentration, related-party debt) defined up front.
The detail
Write a one-page acquisition brief
- Sector(s): up to 3, with reasons.
- Geography: counties or towns you'll actually visit monthly.
- Revenue band: e.g. KES 20–80M annual.
- EBITDA band: e.g. KES 4–15M.
- Involvement model: hands-on operator, board-only, or fully passive.
- Budget: cash, debt capacity, and seller-financing appetite.
- Deal-breakers: customer concentration > X%, related-party debt, pending litigation, non-compliance.
Common acquirer mistakes
- Chasing 'any profitable business' — leads to two years of wasted calls.
- Buying a job, not a business — the seller IS the business and there's nothing to acquire.
- Ignoring industry fit — operating a hotel when your background is logistics is a rough first year.
- Underestimating working capital needed at completion (most deals need 15–25% on top of the price).
Pre-qualify your own finance before you start looking. Sellers move much faster with a buyer who has a soft-approved facility letter than one who says 'I think the bank will fund it'.
Frequently asked
Should I buy a business in a sector I don't know?+
Only if you can hire / partner with someone who does, AND you commit to a 12-month operating handover with the seller. Otherwise, stay in your lane.
Cash deal or seller financing?+
Seller financing (paying part over 1–3 years) aligns the seller with a clean handover and reduces your day-one cash. It's a powerful tool in the Kenyan SME market.
The information in this guide is provided for general guidance only and is subject to change. Fees, timelines, and regulatory requirements in Kenya are updated regularly. Before acting, please confirm details with the relevant authority (KRA, eCitizen, BRS, county government, or other regulator) or speak with a qualified MyBiashara advisor. MyBiashara is not liable for decisions made solely on the basis of this content.
