Month-on-month insolvencies in the UK have been on the decline since March this year when they reached a peak of 0.11 per cent. In yearly terms, the latest statistics from Experian revealed that the insolvency rate across the country fell to 8.7 per cent in October, with a total of 1,685 insolvencies recorded across the month, which is better than figures earlier this year.
But trends suggest that business failures are affecting certain areas disproportionately, confirming that the old adage of 'location, location, location' rings true when it comes to buying a business.
For example, the West Midlands showed the highest rate of improvement with just 0.007 per cent of businesses failing, compared with the previous year's figure of 0.16 per cent. The East Midlands also performed well, falling from 0.12 per cent in October 2011 to 0.09 per cent this year.
However, Wales, the North East and Yorkshire all faired poorly with reported increases in the number of insolvencies for the month.
While each individual business case will differ, figures such as these from Experian can offer broad overviews of the state of business in different regions and are worth keeping in mind when searching for the right acquisition.
For example, it could be that businesses in the struggling regions are on the market for less due to difficult trading conditions, but chances are they will be need an experienced buyer to turn things around in such tight times. Meanwhile, a business in the Midlands may be more expensive but the turnaround process could be simpler as growth in the region proves stronger.
Keep in mind when buying a business that location means more than just personal convenience. Variation in the strength of the local economy, consumer spending patterns and even weather conditions can all have an impact on the success of many a business.
Take a look at our map of administrations to get an overview of distressed businesses in the UK. 
Bring to the market this leasehold specialist car sales and servicing facility located in Horncastle, Lincolnshire. The trade was established as a limited company in 2005.
LEASEHOLD
The company is an online vehicle purchasing platform, providing a fast, hassle-free car-selling service for the end user. A competitor to the likes of webuyanycar.com and Motorway, the company is a well-established online vehicle purchasing platform...
Bringing to the market this denim and casual wear retailer, boating a user friendly comprehensive online presence.
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.