London, Nov. 28, 2024 (GLOBE NEWSWIRE) -- Entrepreneurs in the US have more money to spend than their UK counterparts, according to a survey by BusinessesForSale.com, the world’s largest international platform for buying and selling businesses.
The survey results provide insight into the shifting attitudes and demographics of business buyers in four key global markets: the UK, US, Canada and Australia. The annual survey of more than 1,000 entrepreneurs found that the highest percentage of respondents in the USA had a budget of between USD$100,000 - $250,000, whereas in the UK a typical budget was under £50,000 (USD$97,300).
As well as having higher budgets for purchasing a business, North American entrepreneurs also had more money available as a cash deposit. In Canada, 33% of survey respondents said they had between CAD$100k – $250k available as a cash deposit, suggesting Canadian entrepreneurs are less reliant on third parties to help them finance the purchase of a business.
Are entrepreneurs getting younger?
The survey results also showed that business buyers in younger age demographics were more common than in previous years. In Canada and the UK, the most common age group of business buyers was 45-54, whereas in previous surveys it was 55-64. An increasing number of entrepreneurs aged 35-44 were also noticeable across all key markets.
These results suggest that younger demographics are increasingly looking at buying a business as a route into entrepreneurship. In times of economic instability, buying a business can often come with lower levels of risk than starting one.
These changes were reflected in the written responses of many survey respondents. When asked why they wanted to buy a business, one entrepreneur said: “Buying a business offers immediate cash flow, an existing customer base, established systems, and less risk compared to starting from scratch.”
Other entrepreneurs cited greater professional and financial freedom as reasons for buying a business. One survey respondent said: “I want to buy a business because I value the freedom and autonomy that comes with being my own boss. Running my own business would allow me to pursue my passions, make decisions that align with my vision, and create a work environment that reflects my values.”
Many buyers have bought a business before
Despite being generally younger than in previous years, buyers surveyed in 2024 demonstrated previous experience with buying a business. In the UK and Australia, nearly 45-50% of buyers said they had bought a business before.
When asked about their current employment status, the majority of respondents said they currently worked in full-time employment, as opposed to running their own business. This suggests that a growing number of people are opting to leave their corporate jobs and become their own boss.
One survey respondent said: “I like the idea of having a second stream of income for my family, and the potential ability to grow the business to a level where it can provide myself and my wife some financial freedom closer to our retirement.”
The biggest obstacle to buying a business? Valuation
When asked what they saw as the biggest obstacle or challenge to buying a business, the majority of survey respondents said ‘unrealistic valuation’. For both buyers and sellers, accurately valuing a business for sale is crucial. BusinessesForSale.com’s ValueRight tool has been designed with this in mind.
ValueRight can provide an accurate, reliable valuation using the SDE model (Seller’s Discretionary Earnings). If you have just a few minutes to spare, you can also use ValueRight Express to get a quick, accurate snapshot of your business’ value with just a few key financial figures.
For more information please contact: Stuart Wood / Editorial Manager / stuart@businessesforsale.com
source: Businessesforsale.com
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