Business Buyer Survey Results – Who Buys What

Businessesforsale.com is one of the top business for sale websites (particularly international businesses since they are UK based), and each year they do a survey of business sellers and business buyers.   They have kindly allowed me to publish excerpts of the survey here (and by the way, they offer a free 3-month trial subscription for intermediaries).

Here are some interesting stats from their most recent survey.

Age of business buyers?

45-55 years old, by far at 38% of buyers

Combined with 35 to 45 year olds, that group makes up almost 70% of business buyers.

The 4 main reasons why buyers are looking to purchase a business are:

1. They want to move into a different field of work
2. They want to relocate
3. They are looking to expand a current business
4. They want to be their own boss

Here’s an interesting statistic: 53.1% of US buyers are willing to relocate within their state. 45.9% are willing to relocate out of state while only 24% are willing to relocate overseas for the right business.

Unfortunately, the opinion of business brokers and intermediaries isn’t that high as indicated by the following survey response:

• 19.7%: I don’t trust them
• 45%: They are useful to the business buying process but I don't find them that helpful
• 16%: They are invaluable to the business buying process, I find them really useful and helpful
• 16%: They can help educate me about financing my purchase
• 25%:  I don’t know what a business broker / business transfer agent is

Approximately 55% of BusinessesForSale.com’s database of business buyers is made up of first time buyers. These first time business buyers range from serious individuals who have the funding and expertise in place to people who are just at the start of their new business search.  The remaining third of business buyers on BusinessesForSale.com is made up of:

• Business owners looking to expand a business
• Entrepreneurs looking to acquire a new business
• High net worth individuals looking for investment opportunities
• Organizations operating on behalf of a client seeking to make an acquisition