Startups.co.uk – 18 September 2003
Entrepreneurs looking to buy their way to success
Entrepreneurs looking to buy their way to success. Further Reading Entrepreneurs are prepared to spend heavily to buy other firms, with one in ten of those at a recent business buying event prepared to spend anything between 500,000 to 1 million to acquire another company, according to new research.
The survey, conducted by www.BusinessesForSale.com, found that the majority of potential buyers intended to spend between 100,000 to 500,000 on a company, with nearly half of those ready to part with their money already owning another business or self-employed.
The study, undertaken at a recent How to Buy a Business seminar, revealed that many entrepreneurs were willing to fork out large amounts of money to secure their ideal business, with more than four in ten ready to put down a cash deposit of between 50,000 to 250,00. [sic]
Nearly one in ten of those quizzed said that they would put down a deposit of between 250,000 and 500,000 while five per cent were willing to splash out more than half a million to help secure a business.
Although the survey revealed widespread enthusiasm amongst entrepreneurs for buying a business, more than seven in ten of those questioned admitted to never buying a company before.
The revelations of a general lack of experience in business buying follows a previous survey conducted last year by www.BusinessesForSale.com, which found that the majority of entrepreneurs were totally unprepared for the procedure of buying a firm.
Last years study also found that most of the respondents had little professional help, with the vast majority not having an accountant, legal representative or business plan.
Leigh Nissim, chief executive of www.BusinessesForSale.com, said that these results demonstrate that the route to growth by acquisition is not the preserve of big business alone.
Owners of small businesses see opportunities in the marketplace to grow their business by buying other businesses, he said.
For those interested in buying their own firm, the next Buy a Business seminar will take place on 28 November in Hertfordshire.
|
