San Francisco—Businesses spend more than $35.5 billion a year annually on suppliers and vendors during an ownership transition, according to a study by BizBuySell.com, an online marketplace for businesses on sale.
The study found that 53% of new business owners add a new provider or switch to a different provider after buying a business and 15% add products or services from existing vendors.
For business buyers, the largest investment areas in acquired businesses are accounting and HR services ($3.8 billion), marketing and advertising ($3.5 billion), insurance ($3.5 billion), computer hardware ($2.4 billion) and office supplies ($2.1 billion). For business owners preparing to sell, the top investment areas are accounting and HR ($1.9 billion), financial services ($1.5 billion), marketing and advertising ($1.2 billion) and office supplies ($1.1 billion).
The figures are estimates based on BizBuySell.com and U.S. government data, which indicate roughly 500,000 businesses change hands each year.