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3. The Business Brokerage Market |
What are the Market Segments? |
The market is divided into four main sectors. These are: |
- High Street
o Normal Micro & Small Businesses; approx 98% of the market. Mostly sole traders or small private companies. Total of 78k in NI and 250k in RoI. Usually less than 10 staff and less than £500k t/o.
- Medium
o Medium Sized businesses; approx 2% of the total market.with management structures, a workforce & approx £1m turnover. Owned by private individuals, families and larger companies.
- Large
o Big companies; generally over £5m t/o, possibly listed on AIM, or owned by holding companies. This is Merger and Acquisation (M&A)
- Corporate
o PLCs and other national or international companies; usually quoted on the stock market
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In the US, industry statistics show that approx 10% of all businesses change ownership every year. Statistics show that Business Brokers would be involved in about 1/3 of these salesThe sectors BizSales concentrates is High Street & Medium sized companies; which is normal SME businesses and some of the Medium sized companies up to approx £1m t/o, or more if property is involved. Larger companies will use specialist accountancy practices or Merger/Acquisition firms. The company does have relationships with these firms and these are useful contacts and sometimes cutomers and markets do cross over. |
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