According to a recent Inc. Magazine article, “Let’s Make a Deal“, sales of small businesses in Q3-2013 jumped 42% from the same quarter in 2012. Inc. quotes Curtis Krocker, group manager of BizBuySell.com, “After four years of depressed selling and buying activity, the markets are coming back.”
Why? Motivated sellers and available financing. Many older baby boomer business owners are ready to sell their business and retire. Having held off selling during and immediately after the recession, there is pent-up demand to sell now. Furthermore, banks are willing to lend for small business sales again. During the recession, the Small Business Administration and participating banks had all but turned off the spigot for small business loans. The economy has changed…and so have the financing sources.
If you are a business owner considering selling your business – have your business objectively evaluated by a qualified expert. Know how much your business is worth, so that you can make an informed decision about a) selling now or b) continuing to grow the business and selling later.
If you are an individual thinking about buying a business, pull together a personal balance sheet — know how much of a down payment you can afford. Then…start visiting business-for-sale websites like BizBuySell.com, to get your creative juices flowing, thinking about what kind of business you might like to buy. And…call your local business broker. They may be selling the perfect business for you. And even if they don’t…they can match you with future business opportunities or even do a retained acquisition search for you.
Strike while the iron is hot!
J. Roy Martinez is a Certified Valuation Analyst (CVA) and member of the California Association Business Brokers. He can be reached at email@example.com or 707-778-2040