Who’s going to buy your small business?
It’s a big question, and one that’s obviously impossible to answer with certainty before a sale happens. However, we can get a sense for what the “average” small business buyer might look like.
Bizbuysell.com “The Internet’s Largest Business for Sale Marketplace” did a study in 2016 titled “The Demographics of U.S. Small Business Buyers and Sellers”.
The business buyer profile starts on Page 7. A few highlights:
- Most are college educated.
- 78% are men.
- 64% have a full-time job.
- 93% are looking for an established/independently owned business.
- 63% are looking to buy because they want to be their own boss.
And how much are they looking to pay for a business?
In regards to how much buyers are willing to spend on a small business, their preferences align closely with the business values reported by sellers. Twenty-eight percent of buyers will target businesses below $100,000,almost identical to the 29 percent of sellers who value their businesses in that range. More than half (53%)of buyers will target the $100,000- $499,999 range, in which 40 percent of sellers valued their operations. Nineteen percent of buyers are looking to spend more than $500,000 on a business.
Want to know your potential buyer better? Check out the white paper for full detail: BizBuySell.com White Paper