For all intent and purposes, it’s correct.
However, there is an alternative method that is growing in popularity in today’s economy. That is, acquiring a business.
Instead of driving growth, you can instead choose to buy a competitor, a vendor or a bolt-on business that would allow you to grow revenue and profitability.
The reason that is becoming increasingly popular for existing businesses is due to the baby boomer ‘transition of wealth’.
In short, there is 13.76 million baby boomers in the UK.
This generation holds 75% of the nation’s property wealth and collectively own 2.3m businesses.
Yet given they were born between 1946 and 1964, they’re reaching retirement age quickly and have a big challenge.
They are struggling to pass on the businesses that they own.
With only 30% of businesses listed through brokers being sold, it is resulting in around 10,000 UK companies going into Voluntary Liquidation each year.