New data from Money.com.au reveals that more Australian entrepreneurs are scaling by acquiring established businesses with proven revenue and systems, rather than starting from scratch with new ventures or business models.
Analysis of more than 15,000 business loan requests submitted via the platform in 2024–25 found that 15% (2,300) were for the purchase of an existing business.
The average loan amount requested for purchasing an existing business was $636,000 — nearly three times the overall average of $223,000.
About 42% of those seeking loans to buy existing businesses reported average monthly turnovers above $30,000 — meaning they’re small businesses generating at least six figures annually.
Money.com.au’s Business Finance Expert, Phil Collard, says small and medium-sized business owners are increasingly favouring stable, scalable ventures over riskier startups.
“We’re seeing a rise in acquisition-focused entrepreneurs who are opting for businesses with existing revenue, systems and customer bases, rather than taking on the risk and uncertainty of a new venture or startup,” said Collard
“About 84% of those seeking to purchase an existing business required immediate funding, which tells us there’s a sense of urgency — these buyers are often ready to move quickly when the right deal arises and they don’t want delays in their financing,”
“We’re also seeing a growing pipeline of acquisition opportunities as Baby Boomers retire and look to exit their businesses,”
“This generational turnover is creating a rare moment of supply, where strong, established businesses are hitting the market, and savvy operators are stepping in to take them forward.” he said
The analysis found that New South Wales received the most applications to purchase an existing business (32%), followed by Queensland (26%) and Victoria (24%).
Is buying a business the death of innovation — or a smarter way to scale?
Collard says there’s a more strategic form of entrepreneurship emerging in Australia — one that prioritises scalability and stability.
“For example, starting a rental or equipment hire business from scratch can be tough. You need to source reliable stock, build supplier relationships, and win over customers in a competitive market,”
“But when you buy an existing operation, you’re stepping into a business with proven systems, steady demand, and established contracts,”
“That doesn’t mean innovation stops. That’s where the opportunity lies to modernise inventory management, introduce online booking systems, or expand the range of equipment to boost profitability.” Collard said.
