How Successful Are Businesses After Being Acquired?
To date, we’ve been focused on the success of buyer/seller connections. However, we haven’t focused enough on understanding how successful a business is after being acquired. So, we decided to do just that.
According to BuyAndSellABusiness.com CEO Nunzio Presta, as many as 95% of small businesses fail in their first five years. But it’s a totally different story if you’re buying a small business.
In fact, less than 5% fail within five years of purchase.
It’s safer to buy a business than it is to start one. But we also know that if you’re looking to become your own boss, this one stat doesn’t tell you everything you need to know.
Do most businesses grow? How do revenues, profits, and discretionary earnings change? What about quality of life?
That’s why, last year, we at BuyAndSellABusiness.com surveyed our community of entrepreneurs to find out about their experiences after buying a business. We received more than 560 responses from people who made their purchase, on average, six years prior.
We found that nearly all of them grew their revenues, customer bases, and profit margins; in some cases, substantially, and in some cases within the first year of their purchase. Many not only weathered the effects of the pandemic, but thrived.
Our report looks at four small business types — main street businesses, franchises, eCommerce, and SaaS — and delves into some of the relevant differences between them. If you’re thinking of purchasing your own small business, here’s your chance to hear from those who have done it.
Read the full report here.
Opinions expressed here by contributors are their own.
BuyAndSellABusiness.com launched a private Slack community designed to help people connect, share insight and ask questions about buying, selling and growing businesses or franchises. Apply to join here.
Remember, if you are interested in receiving the latest business news, insights and opportunities from BuyAndSellABusiness.com, you can subscribe to our newsletter here or join our text messaging list here. Also, if you are not a BuyAndSellABusiness.com user yet, what are you waiting for? Click here!
