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B&BS are the most expensive small business to purchase

19 August 2015 by
B&BS are the most expensive small business to purchase

Bed and breakfast (B&Bs) businesses are the most expensive type of small business to purchase, according to latest figures.

The research conducted by Direct Line for Business compared how expensive businesses are based on valuation price to turnover.

B&Bs topped the list with a valuation of £4.49 for every £1 of turnover generated.

Care homes ranked second, valued at £2.56 per £1 turnover, while nurseries were placed third (value of £1.91 per £1 turnover).

According to the research, B&Bs top the table due to the nature of the business, which usually means the buyer is also purchasing a valuable asset in the property itself.

At the other end of the scale, pubs are featured in the top three least expensive businesses with a valuation of 96p. Pubs followed internet businesses and service businesses which have a valuation of 51p and 81p respectively.

Nick Breton, head of Direct Line for business, said: "Small businesses are the lifeblood of the UK's economy and it's great to see that in many sectors there are deals to be had. People looking to become their own boss or invest in a business can purchase an existing enterprise with a proven revenue stream and customer base.

"However, while turnover is a positive marker, it isn't the whole story. Current and future profitability need to be thought about when assessing the potential value of a business as well as the assets that come with the business."

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