Is it harder to buy a business abroad than in the UK?

It takes more preparation, not a different method. The extra work is in finding owners you can't reach yourself, understanding local law and tax, and planning how you'll run the business from the UK. Most of that is solved by having local advisers and someone on the ground from the start.

Which countries do UK founders usually start with?

Ireland is often first because of the shared language, similar business culture and short distance. The Netherlands and Germany follow for access to mainland Europe, and the US for its size. The right choice depends on where your customers already are, or where they want you to be.

Do foreign governments have to approve a UK buyer?

For most ordinary businesses, no. But Ireland, the Netherlands, Germany and the US all screen some foreign acquisitions in sensitive areas, such as critical infrastructure, sensitive technology or data. Since Brexit, a UK company counts as a non-EU buyer in EU countries. Ask a local lawyer early whether your target falls in scope.

How do you approach an owner in another country?

The same way as at home, personally and in confidence, but in their language and by someone who understands local business culture. A first letter from a stranger abroad is easy to ignore. A call from a local adviser is not.

Should we set up a local company before buying?

Not necessarily. Many buyers acquire the shares of the local business directly, so it carries on as before. Whether a new holding company helps depends on tax, funding and how you plan to run it. Take tax advice in both countries before you agree the deal structure.

Buying a Business Abroad: A Guide for UK Founders

At some point, many growing UK businesses run out of room at home. Your customers want you in Dublin, Rotterdam or Chicago. A competitor has opened in Europe. Or the best businesses in your field simply aren't in the UK.

Building from scratch abroad is slow. You need people, premises, permissions and, hardest of all, customers who trust you. Buying a business that already has those things can save years. It also brings risks a UK deal doesn't: another legal system, another tax system, another language and a business you can't easily drop in on.

This guide covers when buying abroad makes sense, how to find and approach owners, what changes in the checks and the deal, and how the main countries compare for a UK founder.

This guide explains general principles. It is not legal or tax advice. Rules differ by country and change over time, so take advice from qualified lawyers and tax advisers in each country before you commit.

When does buying abroad make sense?

Buying abroad works best when you can say, in a sentence or two, why you need to be in that country and why buying is better than building. Good reasons include:

Your customers are already there, or are asking you to follow them.
You need a local licence, permission or track record that takes years to earn from scratch.
The capability you want doesn't exist in the UK, or is much rarer.
A local business gives you a base for a wider region, such as Ireland for the whole island or the Netherlands for northern Europe.

Be wary if the main reason is that prices look lower, or that the UK market feels crowded. A cheaper business in a market you don't understand can turn out to be the expensive option. Our guide on growth through acquisition covers how to test whether buying beats building.

How do you find businesses to buy abroad?

The method is the same as at home: decide exactly what you want, research every business that could fit and approach the owners in confidence. What changes is how hard each step is from the UK.

Research. Company registers, accounts and trade data differ by country. Some publish detailed accounts; others publish very little for private companies.
Language. Many owners of family businesses in Germany or the Netherlands will read a first approach in their own language far more readily than in English.
Trust. Owners of businesses that aren't for sale respond to someone they can meet, ideally someone local who understands their market.

This is where a local presence matters most. When we run a search abroad, our UK team leads the work: the brief, the research, the shortlist and the deal. CDI Global colleagues in the target country provide boots on the ground. They know the local market, speak the language and can meet owners in person. Our guide on finding off-market acquisition targets explains the method in more detail.

Approaching an owner in another country

Treat the first approach as more delicate than at home, not less. Owners abroad may never have heard of you, and some will be wary of a foreign buyer.

Lead with your plans for the business, its people and its name, not just the price.
Respect local norms. In many family businesses, succession and legacy matter as much as money. A letter that talks about continuity will usually get further than one about a quick sale.
Expect a slower pace. Building trust across borders takes more meetings, and often a visit in person before any numbers are discussed.

Our guide on how to approach a business owner covers the first conversation in more depth.

What changes in the checks and the deal?

The checks you'd make on any business still apply. Our due diligence checklist is a good starting point. On top of that, expect to look at:

Employment law. Rules on contracts, consultation and dismissal differ, sometimes a lot. Some countries give employee representatives a formal say in a sale.
Tax. How you buy (shares or assets, directly or through a holding company) affects tax in both countries, now and when you take profits home.
Currency. If you pay in euros or dollars, the price in pounds can move between agreeing the deal and completing it. Talk to your bank about how to manage that.
Funding. UK lenders may be less comfortable lending against assets abroad. Our guide on funding an acquisition covers the options.
Government screening of foreign buyers. In some sectors, a government must approve the deal before it completes. More on this below.
Running it from the UK. Decide before completion who will run the business locally and how you'll report and make decisions. Our integration guide covers the first months after a deal.

How the main countries compare for a UK buyer

Here are four common choices for a UK founder, and what's different about each.

Ireland

Ireland is often the first step abroad. It has a shared language, a similar legal system and business culture, and it's a short flight away. For many UK businesses, Irish customers already feel close to home. Ireland also gives you a base inside the EU.

One thing has changed since Brexit. Ireland's foreign investment screening law started on 6 January 2025, and a UK company now counts as a "third country" buyer. Deals worth €2 million or more that touch sensitive areas, such as critical infrastructure, critical technology, critical supplies, sensitive information or the media, must be notified and approved before completion. Most ordinary businesses fall outside it, but check early.

The Netherlands

The Netherlands is open, international and well connected to the rest of Europe, and English is widely spoken in business. It suits UK founders who want a base for northern Europe or access to its logistics links.

The Dutch Vifo Act screens acquisitions of companies in a small number of sensitive areas, such as certain vital processes, business campuses and sensitive technology. Where it applies, the deal must be notified and can't complete until it's approved. From January 2027 the list of sensitive technologies grows, adding areas such as AI, biotechnology and advanced materials.

Germany

Germany has a deep base of established, family-owned businesses, the Mittelstand, and many face a succession problem. KfW, the German state development bank, estimates that 545,000 small and mid-sized businesses want to find a successor by the end of 2029, while even more owners plan to close rather than hand over. For a buyer with patience and a good local approach, that's a real opportunity.

Language and culture matter more here than in Ireland or the Netherlands. Expect to work in German, and to spend time building trust with owners who care about legacy. Germany also screens foreign buyers: a non-EU buyer taking 25% or more of a German company can be reviewed in any sector, though filing for ordinary businesses is voluntary. Lower thresholds and compulsory filing apply in defence, critical infrastructure and some technologies.

The United States

The US is the biggest single market for most UK businesses, and many founders eventually want a presence there. Buying a US business can be quicker than building one across a country that size, and it gives you local people, customers and credibility.

It's also the biggest step. The market is large and competitive, deal processes can be more formal, and employment, tax and contract practices vary from state to state. The US screens foreign acquisitions through CFIUS. For most ordinary businesses no filing is needed, but deals involving critical technology, infrastructure or sensitive personal data can require one. Ask a US lawyer early.

An example

In a previous role, Michael Ferguson led a search for a UK buy-and-build investor that needed two family-owned businesses in mainland Europe within 18 months. Brokers had produced nothing suitable. The search mapped 83 businesses across four European markets and approached owners one to one, with a message about legacy and continuity, not a quick exit. The first deal completed five months after the work started and the second at 14 months, inside the deadline. Read the case studies.

Questions to answer before you start

Why this country, and why now?
Why buy rather than build there?
Who will run the business locally after completion?
How will you fund it, and in which currency?
Could the target fall under foreign investment screening?
Who will make the approaches, in the owner's language?

If you can answer most of these, you're ready to start looking. If not, an Expansion Briefing is a good place to work them through: a free 30-minute call with us, followed by a Market View: a sample shortlist for your market, and our honest view.

Buying a business abroad: a guide for UK founders