A new report shows that the small business owners make a "substantial" investment in financial services during an ownership transition.
BizBuySell.com, a business sales website, estimated that new business owners spend about $3.5 billion in the period leading up to and following the transaction. The average business buyer spent $95,878 with financial services suppliers and vendors during a transition phase, BizBuySell's study found.
When businesses transition in ownership, the result is positive for financial service providers. BizBuySell found that 64 percent of business owners spent more on financial services during transition periods.
During the first year of ownership, the group estimates, $2 billion is spent on financial services and an additional $1.5 billion in the year before, according to a release.
People who purchase businesses also spend 25 percent more money in the first year than those who start them from scratch.