BusinessesForSale.com has released its report detailing the latest trends in the UK’s businesses for sale market.
The report presents data by business category and region and explores the supply, demand and price of businesses in all these areas.
By comparing the data from the start of the year to six months in, it reveals some interesting trends which will inform business buyers of where the best value, the highest demand and the greatest supply of businesses is.
Below are the four key trends of 2015 so far…..
1. Hospitality and Catering still dominate.
Businesses from the hospitality and catering sectors have kept their stronghold in the UK’s businesses for sale marketplace.
Across the top ten in June 2015 6,996 listings were from the hospitality and catering sector, the highest two of which were restaurants in second place with 1,440 listings and pubs in third place with 1,357. Residential businesses retained the top spot with 2,519 listings but because seven out of the ten categories were hospitality-related it was the dominant sector overall.
The report also examines demand for businesses by sector. Of the 51,576 enquiries received by BusinessesForSale.com in June 2015 12,263 were for catering and accommodation businesses suggesting a 5:3 buyer to vendor ratio.
Rufus Bazley, Marketing Director at BusinessesForSale.com comments, “Food, drink and accommodation businesses are always well represented on BusinessesForSale.com and have a powerful appeal to established and emerging entrepreneurs and fampreneurs as they generally perform well through economic peaks and troughs. And as demand is higher than supply most vendors sell quickly and achieve their asking price.”
2. London, Devon and West Midlands most desirable places to own a business.
London, Devon and the West Midlands are the top three places in which business buyers are seeking to invest, collectively a total of 5,744 enquiries were made in June 2015 for businesses in these regions.
In June 2015 the ratio of buyer to vendor in London was 5:1, in Devon it was 5:3 and in the West Midlands it was 2:1.
Rufus Bazley, says, “London and Devon have always been powerful draws for business buyers willing to pay a premium price. However there is not always such a big gap between supply and demand. If buyers stick by their guns and target businesses in these regions their value will remain robust.”
3. East Sussex, County Tyrone and County Down are the most expensive places to buy a business.
East Sussex, County Tyrone and County Down were the most expensive places to buy a business in June 2015. BusinessesForSale.com listed 17,262 businesses in June 2015 ranging in price from a few hundred to millions of pounds.
County Down retained its top three position it occupied in January when it was Devon and London that took the two top spots respectively while County Tyrone was fourth and East Sussex didn’t feature. Lots of property development opportunities are available now in Ireland and rural regions, which has helped boost them in these polls.
“These polls give valuable insight into the worth of businesses across the UK and can throw up a few surprises. It’s testament to the strength of the many regional economies across the country and may make investors think differently about where they buy and develop their businesses.” Rufus says.
London, County Down and Tyrone were the only three counties to feature on both lists. The remainder of both top tens were mainly rural counties and the Islands with the Home Counties barely featuring.
4. North of England is still the Strongest Supplier of Businesses for Sale.
2,853 of the 17,262 listings of UK businesses for sale in June 2015 were from the North of England. Lancashire and West Yorkshire occupied the top and second spot respectively both in January and June 2015. The North of England dominated the lists occupying five out of the top ten spots on both occasions.
Despite its obvious concentration of businesses London only made it to number four in June 2015, a fall from third position in January 2015. Overall, the Home Counties were relatively underrepresented with Essex and Kent featuring in both list but occupying relatively low positions.
Nine of the top ten were the same for both periods with Cheshire taking ninth slot only in the month of June and South Yorkshire appearing in tenth place only in the month of January.
The overlap between counties where businesses are for sale and buyers are looking was good with eight counties in both lists in June 2015 and nine in January 2015. In June 2015, 3,040 buyers were looking to invest in businesses in the North of England suggesting a 3:2 buyer to vendor ratio.
Rufus concludes, “The business market in the North of England continues to be strong with high numbers of listings and plenty of interested buyers. Increasingly we’re seeing activity outside of London and the Home Counties as entrepreneurs and fampreneurs want a business opportunity combined with a less stressful lifestyle.”
To download your copy of the report click here.