Choosing A Business

It appears that we are now getting regular doses of encouraging news on all fronts in the business for sale marketplace.

While much of this data is skewered simply because it takes current figures compared to past dismal periods, nevertheless, at least we seem to be moving in the right direction.

My colleagues in the M & A world are starting to see very positive deal flow as well as a steady increase in the number of transactions. While there is a wealth of figures being tossed around, most of these are highly subjective and rarely quantifiable thus it does not make much sense to be quoting them as gospel. Most importantly however, is that the mega M & A market rarely translates to what is happening on Main Street.

In my opinion, the most significant piece to the puzzle for business buyers is the overall level of confidence they have in the near-term future. On this front, all signs point to a more positive outlook. It would be easy to allow major news events to derail one’s general confidence. But again, these issues will work themselves out and cannot be the basis for an individual business buyer to shy aware from present-day opportunities.

New job creation is up although it is still hard for me to quantify these each month since every economic “expert” has a different take. As well, many small businesses are seeing an increase in sales, profits and overall activity. While they are not across the board increases in all sectors, it is far better than going backwards.

While signs may be headed the right way, we are in now way close to the point of a seller’s market like the past.

The opportunities remain incredibly attractive for any serious prospective business buyer to negotiate highly favorable deal terms. At the same time, this increased confidence also litters the business for sale landscape with more people who think they want to buy a business and therefore the buyer pool gets a bit bigger.

Competition between buyers has always enabled a seller’s market and while this is not the exact case right now, sellers may see more activity for their listings.

That is specifically why it is so important for business buyers to be ready to submit offers and begin the process of serious discussions with a seller and eliminate all the “noise” that competing buyers may present.

Although there appears to be some light at the end of the economic tunnel, rest assured that qualified buyers are still in charge right now, so use it to your advantage when negotiating deal terms. Here is a very helpful article on negotiating deal terms when buying a business for sale


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