Buying a Business Feels Like Growth — Until It Isn’t
For many business owners, buying another business feels like the obvious next step.
You already know your industry.
You already have customers.
You can “bolt it on” and grow faster.
But most acquisitions don’t fail because of lawyers, negotiations, or price.
They fail before the deal is done — because the decision to buy was never properly tested.
The Real Reasons Acquisitions Go Wrong
1. Cash Flow Is Treated as an Afterthought
A business can look profitable and still drain cash.
Loan repayments, VAT timing, working capital gaps, and seasonal dips often collide after completion, not before it.
What looked affordable on paper suddenly feels tight every month.
2. Tax Costs Appear Late — When They Hurt Most
Stamp duty, VAT exposure, capital allowance mismatches, group tax issues — these rarely feature in the headline deal price.
But they hit cash immediately once the business is yours.
3. Integration Is Always Harder Than Expected
Systems don’t merge.
Staff don’t align overnight.
Customers don’t behave the same way.
The owner’s time gets stretched just when stability matters most.
4. Complexity Multiplies Existing Weaknesses
Buying another business doesn’t fix problems — it magnifies them.
If your current business relies too heavily on you, the acquisition will too.
The Question Isn’t “Should I Buy?”
The real question is:
“Is my business strong enough to absorb another one without breaking?”
Successful acquisitions usually share three things:
🔹Predictable cash flow
🔹A business that runs without daily owner intervention
🔹Structure and tax planning done before the deal
Before asking “Which business should I buy?”
Ask:
“What would break first if I did?”
Contact George Skelton, Tax Partner at RDA Accountants, to discuss your situation in detail and craft a tailored strategy:
Email: gskelton@rda.ie
Phone: +353 539170507
Website: rda.ie