Member Article

Leeds entrepreneur launches startup with £1 million financing from high street mogul

Leeds-based entrepreneur Sean Mallon has launched startup Bizdaq, a new online platform to help business owners buy and sell small and medium-sized businesses.

The new company has raised £1 million in financing, most as venture funding from British high street entrepreneur Tim Whitworth, co-founder and former chief executive of clothing chain Republic.

The funding will be used in part to drive Bizdaq’s growth over the coming months and will allow for a nationwide marketing campaign following today’s launch.

Sean has said that Bizdaq’s goal is to small and medium sized businesses capitalise on Britain’s economic growth and retain more of their hard earned capital.

Sean is an experienced business sales broker with seven years in charge of one of the UK’s leading business brokerage consultancies.

Sean Mallon said: “When hard-working business owners decide to sell up, brokerages can help them find a buyer.”

“But traditional brokerages tie business owners in to strict 12-month contracts, are often too slow to act and charge sellers up to 15% of their sale fee.

“By launching as a monthly subscription online service, Bizdaq gives business owners the flexibility and price point to sell on with far lower outlay, or even to change their mind without having sunk unnecessary cost.

“It’s about giving small businesses the tools needed to complete their sale as well as giving them choice. We want to give them more freedom to choose the option better suited to their needs.”

While a typical business transfer agent may take a commission of up to £15,000 on a business sold for £100,000, Bizdaq expects most of its subscribers will only ever pay an average of £500 to find a buyer and complete the sale, saving thousands in agents’ fees.

Having learned how to value and sell other people’s businesses as an employee of a national brokerage, Mallon set up his own brokerage firm in 2007, aged 21, armed with just a Yellow Pages, a borrowed telephone and his parents’ laptop.

Today, the Leeds-based company employs more than 30 staff and has helped over 1,200 business owners sell on, from local convenience stores all the way up to a £3.5 million finance company, which achieved a 30% higher valuation than expected.

This was posted in Bdaily's Members' News section by Clare Burnett .