How to Buy a Business in Singapore: Step-by-Step Guide for First-Time Buyers

Singapore’s thriving economy, ranked 1st in Asia for ease of doing business, offers lucrative opportunities for aspiring entrepreneurs. Whether you’re eyeing a café in Tiong Bahru or a tech startup in Jurong, this guide will help you navigate the SME market, avoid pitfalls, and secure a profitable investment in 2025.

Step 1: Research Singapore Business Opportunities

Identify High-Demand Industries

According to Enterprise Singapore’s 2024 report, the fastest-growing sectors include:

F&B Franchises: Bubble tea chains (e.g., LiHO Tea) and health-focused cafés.
Digital Services: E-commerce logistics and SaaS platforms.
Sustainability: Startups aligned with the SG Green Plan 2030.

Pro Tip: Use Acqora’s marketplace to filter businesses by industry, price, and location.

Step 2: What Are the Most Profitable Industries in Singapore?

Case Study: F&B vs. Retail

F&B: High demand but competitive. For example, a café in Tiong Bahru with S$20,000/monthly revenue may cost S$300-500k
Retail: Lower margins but stable. A minimart in Bedok might generate S$15,000/month with a S$200k price tag

Key Metric: Target businesses with 15%+ EBITDA margins and 2–3 years of financial records.

Step 3: Understand Singapore Legal Requirements for Business Buyers

Compliance Checklist

ACRA Approval: Verify the business on BizFile+.
Licenses: Transfer permits (e.g., SFA licenses for F&B).
Employment Passes: Check MOM quotas for foreign hires.

Red Flag: Sellers refusing to share ACRA records—walk away.

Step 4: Conduct Due Diligence Like a Pro

Key Metrics to Analyze

Revenue & Profit: Check audited financials (e.g., median SME revenue is S$1.85M)
Debt Obligations: Ensure liabilities (e.g., loans) are disclosed. For example, A printing business in Novena lists a S$300k asking price with S$500K-1M turnover

Step 5: Secure Financing in Singapore

Compare Funding Options

Bank Loans: 5-8% p.a. interest (ideal for established businesses).
Seller Financing: 3-6% p.a interest (low upfront costs)

Example: DBS SME loans

Step 6: Finalize the Purchase Safely

Watch Out For These 3 Red Flags

Overvalued Assets: Demand receipts for revenue claims.
Fake Franchises: Verify brand partnerships.
Pressure Tactics: Ignore “limited-time” urgency.

Protection Tip: Use verified brokers to validate deals.

Conclusion: Start Your Singapore Business Journey Confidently

From researching businesses to securing loans, this guide equips you to buy a business in Singapore with confidence.

Ready to begin? Browse businesses on Acqora.

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How to Buy a Business in Singapore: 2025 First-Time Buyer’s Guide