Buying a Business in 2026: What’s Changed?
Buying a business in 2026 looks very different from just a few years ago. Economic conditions, lending policies, tax compliance, and due diligence expectations have all evolved, making it more important than ever for buyers to be well prepared. Whether you’re purchasing your first business or expanding an existing operation, understanding what’s changed can help you avoid costly mistakes.
1. Lending Is Tighter — and More Detailed
Banks and lenders are taking a far closer look at business purchases in 2026. While interest rates have stabilised, lenders are more cautious about risk. Buyers are now expected to provide:
Detailed financial forecasts and cashflow projections
Evidence of sustainable profits, not just one-off good years
Clear separation of personal and business finances
For owner-operators, lenders are also scrutinising drawings and wages to ensure the business can service both the loan and the buyer’s personal living costs.
Non-bank lenders remain an option, particularly where speed is required or where bank criteria cannot be met, but higher interest costs must be factored into the purchase price.
2. Due Diligence Has Expanded
Traditional due diligence used to focus on profit, customer base, and assets. In 2026, buyers must go deeper. Inland Revenue’s increased enforcement activity means tax compliance is a major focus.
Buyers should carefully review:
GST, PAYE, and income tax filing history
Any outstanding tax arrears or instalment plans
Shareholder current accounts and related-party transactions
Undisclosed tax risks can follow the business after settlement if not identified early.
3. Greater Focus on Sustainable Earnings
Multiples are still used to value businesses, but buyers and lenders are placing more emphasis on quality of earnings. One-off Covid-related support, abnormal expenses, or inflated owner wages are being normalised more aggressively.
Buyers should ensure earnings reflect:
Market-rate wages for the owner’s role
Ongoing customer demand
Realistic growth assumptions
This shift has narrowed the gap between seller expectations and what buyers are prepared to pay.
4. Employment and Compliance Risks Matter More
Employment law compliance is now a critical part of business purchases. Buyers are increasingly responsible for historic issues once they take over.
Key areas to review include:
Employee vs contractor classifications
Holiday pay and leave entitlements
Employment agreements and HR processes
Failing to identify issues early can result in unexpected liabilities post-purchase.
5. Structure and Tax Planning Are Crucial
How a business is purchased — shares vs assets, individual vs company ownership — has significant tax implications. In 2026, Inland Revenue is paying closer attention to shareholder loans, trusts, and related-party structures.
Early advice can help buyers:
Optimise tax outcomes
Protect personal assets
Improve future financing and exit options
Buying a business in 2026 is still a powerful pathway to wealth and independence — but only when done correctly. Strong preparation, thorough due diligence, and integrated tax and lending advice are no longer optional.
Engaging experienced advisors early can help ensure the business you buy delivers the returns you expect, without unpleasant surprises down the track.