It’s A Great Time To Buy A Business!
Today’s improving economic conditions have produced an environment that is conducive to buying a small business. Whether your’re inclined to buy a challenged business and fix it, or buy a strong business and grow it, a lot of things are working in your favor.
First of all, the financing landscape is pretty good. Both small and large banks are lending using both conventional loan products and SBA products, non- traditional lenders are offering compelling products at interest rates that are higher than the banks but still very low from a historical perspective, and sellers continue to provide financing at attractive terms. Secondly, many business are experiencing improving trends that can benefit a buyer. These factors contribute to an improving financing environment – some would say it is robust.
Most business sale transactions are completed based on a mix of the following: 1) buyer cash, 2) traditional bank financing, 3) non-traditional financing, and/or 4) seller note. Creativity and terms are as important (sometimes more important) as price. Listen closely to what is important to a seller. Invariably, there is a gap between what a buyer will pay and what a seller will accept, and a creative solution may be the answer. For example, maybe the buyer could fund an insurance policy for the seller, provide an employment/consulting opportunity, or pay for a personal vehicle for the seller.
The point is – if you’re interested in buying a business, now is a good time to pursue your passion!