One of the world’s most highly trafficked business for sale platforms, BusinessesForSale.com, with over 60,000 businesses listed, ranging from convenience stores and campsites to e-commerce and internet businesses, conducted a survey with over 200 registered business buyers which revealed:
- 54% of business buyers in the UK have more than £50,000 in cash to use as a deposit
- 80% of business buyers in the UK expect asking prices for businesses to come down due to the Covid-19 crisis
- 38% of business buyers in the UK intend to finance the entire purchase of a business using their cash reserves only
Andrew Markou, CEO of BusinessesForSale.com, says: “I think because of the uncertainty of Brexit in the last three years, people have generally held onto cash, and this pandemic has accelerated that. But with interest rates at such historic lows, the cash in the bank is seen by entrepreneurs and those looking to start or buy a business as a liability rather than an asset, so it makes sense to put that cash into a business, especially if sellers are willing to reduce their asking prices for a faster sale in this climate.”
David Lee, a 69-year old asset investment consultant from Cheshire, has been searching BusinessesForSale.com for over a year on behalf of an acquisition company. He says: “We are not strictly cash because we are looking at the £1m to £5m price bracket of businesses for sale. So, we use the assets in the business to leverage funds from our investment panel but like everyone else – at whatever level – we are looking for businesses that are profitable that are capable of growth regardless of the crisis.”
The survey has also been conducted in the United States, which revealed that over 65% of business buyers had over $50,000 to act as a deposit but less people (70% of those surveyed) believed that asking prices would come down as a result of the crisis.
This is really positive news for anyone looking to sell in the current climate. Find out more about how BusinessesForSale.com can help you sell a business here.