Should You Buy A Business Now?
by Andrew Cagnetta, Transworld Business Brokers
The answer is a resounding yes! If you have cash and have the ability to work a business for a small return, then buy now!
I know...you think this is self serving. The business broker wants you to buy a business. While that is absolutely true, I am giving my own family members this timely advice to jump into the entrepreneurship pool.
Business valuations are down. Valuation multiples and the income used in the calculations are at historic lows. We will all be looking back at this time and remark "I should have bought that business I always wanted in 2009."
Imagine buying a business now that used to make say $500Kbut currently makes $100k. If you buy it for 2 or 3 times less that it's worth, you would pick up a great business for very little money!!
There are many more reasons the time is right.
1.Financing rates are LOW!! That’s if you can get any financing, but things are starting to loosen up out there.
2.Sellers are financing the deals since there is very few sources of capital for buyers to choose from.
3.Small businesses will drive the recovery. They always have and to be small and nible is the order of the day.
4.Competition is gone or at least weakened. Once again the small guy with capital can win in today’s price sensitive marketplace.
5.You have time to learn the business while it is slow. Many time the learning curve can take the better part of a year. With business being slow, you can focus on quality not quantity.
Visit the Transworld Business Brokers at www.tworld.com for more info on this subject
