Best Time to Buy a Business?

Recent activity in our business is proving very profitable for buyers. They have found gems that others passed on.

Any decent financial advisor will tell you that it is important to keep invested in a down market and even purchase as much as you can when the market is “cheap”. Many people burned by the financial downturn liquidated at the bottom and have recently decided to get back into the market as it was reaching record highs. They missed the opportunity for huge gains!

Similarly, people interested in buying businesses sometimes focus on the recent trends rather than the longer historical story and the opportunity for growth. When businesses show strong trends and are at their peak in profitability, they will garner a higher price. There are many opportunities to find businesses that continued to be successful over the long haul, probably struggled through the recession, but maintained profitability.

However, business owners don’t always have the luxury of hanging on for another couple years to get back to the glory days. Retirement and illness are the two major factors pressing an owner to sell sooner rather than later. This becomes a great opportunity for a buyer.

Sitting on the sidelines and waiting for the perfect deal will cost much more in lost opportunity and higher prices. In the stock market, an investor has almost endless choices and can buy at will. When purchasing a business, there is a very limited inventory and many buyers. If you find a business that piques your interest, this is not the time to sit on the sidelines to see what happens. Entrepreneurs take action!

Talk to your Apex Business Advisor about our current opportunities.