The current economic climate continues to hinder some business sales. But even with a challenging environment, businesses are changing hands. Regardless of the economy, many aging boomers are looking to retire, while younger boomers are interested in buying and becoming their own bosses.
Many business owners are concerned with the future and already have plans to sell in the next few years. They may be even more motivated to start the sale process now, since businesses that are on the market are not selling as fast as in recent years. Buyers are discovering that business opportunities do exist, and that regardless of the state of the economy, deals are being done, they may simply require some creativity.
With credit markets as they are, banks are utilizing tighter lending underwriting requirements for business acquisitions. Buyers and sellers must develop creative deal-structuring strategies that make transactions happen and provide future success. Seller financing helps with the capital structure, and has almost become a requirement by lenders in the current environment. Seller participation assures a prospective buyer and lender that the seller believes in the value and sustainability of the business.
While there’s much doom and gloom associated with the current economy, opportunities do exist for those interested in buying or selling a business. For business owners, it’s important to work with a qualified “team” of advisors to include, your accountant, attorney and a qualified business broker.