The economic downturn hurt everyone, small business owners were no exception. Now the economic climate is improving, and so are the prospects for business owners who are thinking about selling.

 Businesses have been selling quicker, for higher multiples and the amount of businesses on the market and coming to market have decreased dramatically.

According to BizBuySell’s Second Quarter Insight Report, the second quarter of 2013 saw an improvement in the overall financial health of small businesses. As these small businesses do better, their numbers improve and they become more appealing to buyers.

 This turn in the outcome for small business ownership has changed the perception of buyers back to owning your own business as part of the American dream. This perception change has been a big help to those thinking about selling.

 The financial recovery has helped business sellers in other ways too. As home values and stock prices rise, so does the ability and confidence of buyers taking the entrepreneurial plunge. Better financial portfolios means buyers are able to generate bigger down payments and get business capital from third-party lenders.

 Banks and other traditional lending institutions who slammed shut the channels for third-party financing are slowly beginning to lend again, which is helping to bring more buyers to the market. There has also been a surge in the number of business sellers who, because their businesses are on the rise again, are willing to offer seller financing. These two financing options have opened the entrepreneurial market to substantially more prospective buyers, which is, of course, good for sellers.

 Have you been thinking about selling your business, but have wondered if now was the right time? For many business owners it might be. If you had considered selling in the last few years, but were apprehensive because of the state of the economic climate, now could be a great time to reconsider.

 Please feel free to leave us a question or comment here, and we can get you the information you need to answer the question “to sell or not to sell?”

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com