Contrary to some suggestions, there is still a large number of profitable businesses for sale in the UK. However, the number is not as high as it has been in the past, with many companies struggling to stay in the black.
In the past, this might not have held so much importance. We've always seen a decent level of interest in distressed businesses as well as healthier opportunities. But as the economy limps on in limbo between recession and a secure recovery, people appear to be reluctant to buy a business that isn't already profitable.
Recent figures from the Entrepreneurs Index, set up by Barclays Wealth, revealed that the number of growing companies that changed hands fell by 38 per cent in the first half of this year compared with the previous six months.
This suggests either a lack of interest from buyers, in which case those that are interested should find themselves operating with the upper hand, or a decline in the availability of profitable businesses, in which case anybody looking to buy a business needs to make sure they are aware of upcoming opportunities as soon as they hit the market if they want to stand a chance of beating the competition.
The research also showed that there was a 29 per cent rise in the average profitability of companies that were still able to find buyers, so while the number of opportunities is no longer on the rise, the quality of potential acquisitions is improving.
Richard Phelps, managing director of Barclays Wealth, commented: “The decline in the number of shareholder changes in growing companies probably indicates that it is harder for businesses to be sold, mainly due to the continued uncertainty in the global economy.
“Business owners need to contemplate managing their business and associated risks further into the future.”
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.
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