Entrepreneurs in the United States enjoy significantly larger budgets for business purchases than their counterparts in the United Kingdom, as highlighted by a recent survey from BusinessesForSale.com, the premier international platform for buying and selling businesses globally.
This compelling survey gathered insights from over 1,000 entrepreneurs across four key global markets: the United States, the United Kingdom, Canada, and Australia. The findings revealed that a striking percentage of U.S. respondents reported having a budget between USD 100,000 and $250,000 when considering the purchase of a business. In contrast, the typical budget for U.K. entrepreneurs was considerably lower, generally under £50,000, which equates to approximately USD 97,300
Besides larger budgets, North American entrepreneurs exhibit a greater capacity for cash deposits. Notably, one-third of Canadian respondents indicated they have between CAD 100,000 and $250,000 readily available for deposits. This suggests that Canadian entrepreneurs tend to rely on something other than third-party financing options when pursuing business acquisitions.
A Shift Towards Younger Entrepreneurs?
The survey also revealed an intriguing trend: entrepreneurs in younger age groups are increasingly entering the business-buying landscape compared to previous years. In both Canada and the U.K., individuals aged 45-54 emerged as the most common demographic among business buyers. This marks a shift, as earlier surveys indicated that the predominant age range was 55-64. Furthermore, there was a notable rise in the number of entrepreneurs aged 35-44 across all key markets, indicating a growing interest among younger individuals in entrepreneurship.
These shifts in demographics suggest that younger aspirants increasingly view purchasing an existing business as an attractive alternative to starting from the ground up. In economically uncertain times, acquiring a pre-established business can often present lower risks than launching a brand-new venture.
These sentiments were echoed in the personal reflections of many survey participants. One entrepreneur succinctly stated, “Buying a business offers immediate cash flow, an existing customer base, established systems, and less risk compared to starting from scratch.” Others emphasized their desire for professional and financial autonomy. One respondent expressed, “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 truly reflects my values.”
Experience Among Business Buyers
Interestingly, despite the trend of younger buyers entering the market, a significant portion of those surveyed in 2024 had prior experience in business acquisitions. In the U.K. and Australia, nearly 45-50% of respondents confirmed they had previously purchased a business.
When queried about their current employment situation, the majority of respondents indicated they still hold full-time jobs rather than operating their own businesses. This trend suggests a growing inclination among professionals to transition from corporate roles to entrepreneurship. One survey participant shared, “I like the idea of having a second stream of income for my family and the potential to grow the business to a level that could provide financial freedom for my wife and me as we approach retirement.”
Valuation: The Primary Hurdle
When asked about the most significant challenge they face in buying a business, an overwhelming number of respondents pointed to “unrealistic valuation” as the chief concern. Properly valuing a business for sale is essential for both buyers and sellers. To address this vital issue, BusinessesForSale.com offers the ValueRight tool—a resource designed for accurate business valuations.
ValueRight utilizes the SDE (Seller’s Discretionary Earnings) model to deliver precise and trustworthy valuations. For those pressed for time, ValueRight Express offers a quick yet comprehensive snapshot of a business's value based on just a few key financial figures, making the valuation process more accessible and efficient for entrepreneurs.
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