Home
Distressed Businesses
  • All Distressed Businessess
  • Administrations
  • Liquidations
  • Winding Up
  • Insolvency Advice  New
Buy a Business
  • All Businesses for Sale
  • Find a Business for Sale
  • Raising Business Finance
  • Buyer Acquisition Service   New
  • Escrow Service   New
Sell a Business
  • Sell Your Business
  • Seller Accounts
  • Need Help Selling?
  • Help With Finance New
  • Business Valuation
  • Business Wanted Adverts
Insights & News
  • View All News
  • View All Insights
  • Exclusive Insights New
Lens
  • Search all UK Companies  New
Log in
Join Now

Home / Insights / Expanding your business through acquisition

Expanding your business through acquisition

FOR BUYERS

As the government takes increasingly strident steps to rebuild the post-recession national economy, the importance of building businesses rapidly, primarily through the purchase of smaller or bolt-on companies, is becoming increasingly apparent.

A number of moves and meetings throughout September have highlighted the fact that Britain's entrepreneurs and the small businesses they foster are being seen as the backbone of viable and sustainable growth. Speaking at MADE, the Festival for Entrepreneurs, held in Sheffield in September, business secretary, Vince Cable, emphasised the importance of small businesses and new enterprises in pulling up the slack left by a contracting public sector.

"We have hundreds of thousands of very good small companies in Britain," he said, "But they are going to have to grow rapidly in order to absorb people and keep the company growing." He warned, "If it doesn't happen, the economic strategy simply won't work."

Shortly after MADE, a deal was announced that exemplified the benefits that can be drawn from the purchasing of a similar, smaller business. Shred-it, the on-site destruction company that manages the disposal of redundant documents and office waste, added a Welsh document disposal firm to its portfolio.

The taking-on of South Wales Shredding's two sites increased Shred-it’s national presence to 17 locations around the UK. Building their portfolio through purchase of a successful small firm, rather than through the creation and subsequent fostering of proprietary branches, has given the firm many benefits.

The outlay and investment involved in setting up two new branches has already been made, and a smart acquisition will often be priced at a discount, meaning instant cost savings. It also means that the two locations have already proven their value, and have an established foothold in the market that Shred-it is now free and able to build upon.

The company’s European executive vice president, Robert Guice, pointed out, "It will give us immediate and additional resource to expand beyond our location in Bridgend and take on more customers in South Wales."

The wisdom of purchasing small businesses has also received backing by figures from the market information company, Experion, that demonstrate the comparative strength of so-called 'micro-businesses'.

Experion found that businesses that employ a staff of just one or two have risen from just 150,000 in 2005 to more than 400,000 in 2010 and that, crucially, they have been found to suffer the lowest insolvency rates and have the second healthiest financial score compared to other businesses.

Potential investors and buyers are already beginning to value the micro-business sector. David Barnett, a business broker with Sunbelt Network, said he has a list of more than 300 people interested in taking over small companies – and with the retirement of enterprising baby-boomers imminent, he is expecting the number of companies on offer to see a sharp increase. "The next decade is going to be huge for this industry," he said.

So, as the economy strengthens and more money is plowed into the nurturing and development of small enterprises, forging expansion through buying small businesses is a clear path to economic success.


Share this article



Latest Businesses for Sale

Curtains and Blinds Business
South West, UK

The business specialises in all kinds of made to measure curtains and blinds, both in traditional and more contemporary designs. The business also sells to commercial customers such as schools, pubs, restaurants, and residential homes.

Asking Price: Offers Invited
Turnover: £825,000

LEASEHOLD


Established Butchers
South West, UK

There has been a butchers at this site for over 60 years and the current owner has run it for the last 16 years or so. The business has been a real labour of love accruing many regular customers and a fantastic reputation whilst under the vendors ow...

Asking Price: Offers Invited
Turnover: £312,000

LEASEHOLD


Village Bakery & Shop
West Midlands, UK

The bakery & shop has many regular repeat customers who call in for bread, rolls, cobs, cakes, pastries, pasties, pies and hot and cold filled sandwiches. It has been established for over 30 years and is currently up for sale due to the retirement of...

Asking Price: Offers Invited
Turnover: £302,000

LEASEHOLD



View more businesses for sale

Search Insights

Latest Insights

UK Snapshot: Dental Industry M&A

SECTOR GUIDES

Peter Lidgitt – Building a £22m business through acquisitions

FOR BUYERS

The key steps to making successful distressed acquisitions

FOR BUYERS

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Insight Categories

  • - For Buyers
  • - For Sellers
  • - Distressed Businesses
  • - Industry Insights
  • - Sector Guides

View all insights

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources

Become a Member

About Us

Business Sale Report is the UK's leading independent business for sale & distressed business listing service. Established in 1995, the report offers an up-to-the-minute, comprehensive overview of businesses for sale, latest distressed business listings and daily acquisition news.

Our Services

Businesses for Sale
Distressed Companies
List a Business
Help with Finance
Buyer Acquisition Service
Small Businesses for Sale

Company

About Us
Insights
News
FAQs
Reviews
Terms & Conditions
Privacy Policy

Get In Touch

020 8875 0200
[email protected]
167 Oakhill Road, London, SW15 2QW
Working hours: Mon-Fri, 9am - 5:30pm


Sign up to our free newsletter



© 1995-2022. Business Sale Report Ltd. All rights reserved. www.business-sale.com.