Nashville businesses have enjoyed the recent growth of the city. With so many individuals, small businesses, & corporations relocating to the Nashville area, it’s no surprise that we’ve seen buyer confidence increasing on business sales. We’re also seeing similar optimism in other Southeastern cities.
A Good Market for Buyers and Sellers
Why It’s a Good Time to Buy
- Low Lending Rates
- Lending rates are still at historic lows, which means buyers can get more business for the same total financing charge. It also lowers the entry barrier for those wanting to buy a business with less risk.
- Backlog of Businesses
- Many business owners have not been able to sell their businesses since The Great Recession. With so few buyers in the market for several years, it created a backlog of ready and willing sellers.
- Underutilized Capital
- One reason for fewer buyers in the marketplace in recent years has been the freeze on capital spending imposed by many companies & individuals. During economic uncertainty, people tend to be very conservative with investments. As market confidence improves, people see opportunity where they had seen risk.
- Hot Markets
- Several individual city markets have led the charge toward economic recovery. Nashville is currently experiencing great growth and notoriety as an “it” city for businesses, professionals, & families.
Why It’s a Good Time to Sell
- Low Lending Rates
- Low lending rates help sellers too. More people & businesses are able to purchase because their financing charges are less. A bigger pool of active buyers is exactly what sellers want.
- Market Confidence
- Overall market confidence is high, especially for small businesses. We have seen many buyers who wanted to make a move years ago move off the fence in the past 18 months.
- Underutilized Capital
- Businesses like to put their capital to work to create additional revenue streams, new market growth, & drive additional capital. We’re seeing VCs re-enter the buying market, ready to buy.
- Corporate Refugees
- Many corporate refugees look to fulfill a passion after leaving the corporate world and be their own boss. We have conversations every week with future business owners who are getting ready to take that step.
There are many other factors to consider before buying or selling a business, but these factors have contributed to a good market for both sides of the table. If you need help getting someone to the table, contact one of our experience business brokers for a consultation.