NEWS THEME: Change of Ownership Is a Shortcut to Entrepreneurship
29.10.2025
A business does not always need to be built from scratch. For someone considering entrepreneurship, a good starting point may be a business acquisition – and LADEC provides solid support throughout the process.
A change of ownership is a good alternative for starting a business, provided that the right company and the right kind of professional find each other.
“Through a change of ownership, you have the chance to get off to a flying start. Naturally, it’s important to carefully familiarise yourself with the targets and consider whether to buy shares or the business operations,” says Business Developer Pasi Kangas from Lahti Region Development LADEC Ltd.
A smooth start through a change of ownership was experienced, for example, by the new entrepreneur of Husula Garden, Jesse Paavola.
“When the company felt right and, on top of that, my spouse also got a job out of it, we seized the opportunity. We started from zero, but we had enough enthusiasm and courage,” Paavola says. >>> Read the full Husula change‑of‑ownership story here
The market for changes of ownership works through networks, where LADEC also plays a key role. When a prospective buyer has a clear business idea and knows what they are looking for, the selection of companies for sale widens – you may even find “off‑market” opportunities. Often, the buyer is found among existing staff, customers or even competitors.
“Moving the entire family from one region to another for the sake of a business is a big decision. That’s why buyers are often found nearby,” Kangas explains.
The Company Must Be in Selling Condition
For many owners selling their business, the motive is simple: the end of their career is approaching, they want the operations to move into a new phase and securing jobs for the future is important.
In generational transitions within a family, the ownership shifts inside the family circle. In such cases, sellers may not require the full purchase price, and payment arrangements tend to be flexible. Other changes of ownership happen through business acquisitions.
“Sales are easier when the company is in good selling condition, its operations are documented, and everything isn’t only in the entrepreneur’s own head. The entrepreneur must also be in selling condition – meaning ready to let go of the company, with pension matters in order,” Kangas notes.
A company in selling condition is profitable and has realistic growth prospects. Buyers need to look beyond the numbers: solid contracts with both customers and subcontractors offer an indication of future stability. A good example is Mittametalli in Heinola, where experienced business leader Marko Kojo bought a partnership stake a couple of years ago.
“The company has strong expertise, which makes it easy to build something new. Our strength is having everything under one roof – design, product development and modern production.” >>> Read the full Mittametalli change‑of‑ownership story here
In small companies, personal dependency can be a challenge. If customers have dealt with the same person for years – even as friends – a new entrepreneur might encounter difficulties. A business acquisition can come together quickly if the buyer’s financing is in order.
“The seller’s own activity also plays a big role in how quickly a buyer is found. Results don’t come from waiting,” Kangas emphasises.
LADEC Supports All Stages of the Change‑of‑Ownership Process
A common stumbling block in change‑of‑ownership cases is that the company’s cash flow and the purchase price do not match in a way that enables a reasonable payback period. Creativity is often needed to make the equation work.
“One option is gradual ownership – starting with a minority share and increasing it over time. In that case, the old and new owners can also work in parallel for a while, allowing knowledge to transfer too,” Kangas says.
Both sellers and buyers receive support from LADEC throughout the change‑of‑ownership process. LADEC helps assess the company’s condition, financing options, as well as the opportunities and risks of the deal. LADEC also supports new entrepreneurs in preparing a business plan.
The new entrepreneurs running Bus Burger Hollola, Pipsa Uimonen and Viia Floor, also received help from LADEC.
“It was reassuring to have an external person asking good questions, helping to structure our thoughts and challenging us to look at the plans from different angles,” says Uimonen. >>> Read the full Bus Burger Hollola story here
LADEC does not conduct company valuations nor handle the legal arrangements of the transaction – those are the responsibility of the parties involved as well as their lawyers and consultants.
Emotions are also at play in changes of ownership.
“Even if the seller has built the company over decades, they must also be able to put themselves in the buyer’s shoes. The pricing must be such that the buyer can realistically finance the acquisition,” Kangas says.
Pasi Kangas’ Tips for Sellers and Buyers
Seller: Put these 3 things in order before selling!
- Make profitability and growth prospects visible
- Ensure all documents and contracts are in good order
- Remove responsibility from being concentrated on one person
Buyer: At least check the following!
- Financial figures
- Retention of key customers
- Price vs. payback capability
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Text: Sami Turunen
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Main photo: From left to right: Jesse Paavola from Husula Garden, Marko Kojo from Mittametalli Ltd, and the Bus Burger Hollola entrepreneur duo Pipsa Uimonen and Viia Floor.