Best Time to Buy a Business?

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BuynowRecent 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.

Small Business Confidence

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OpPessThe Midwest hasn’t been known as being on the cutting edge or being the leading indicator. However, there are positive signs of stability and growth in our world that might be lagging elsewhere. (Maybe it’s the press that keeps some people looking at the glass as half-empty, and maybe there is just a fine line between optimism and pessimism.) A recent Wall Street Journal article on small business optimism reveals similar attitudes of small business owners around the country.

We are in a region of the country that is typically conservative in our financial and business investments, so seeing positive trends are a real boost to our confidence. Mid-westerners may still be a little cautious in hiring quickly, but case after case we are witnessing small and medium sized businesses that are showing a strong recovery and growing in the last couple of years.

This can translate to business owners now being able to sell their businesses for true value and retire with a decent savings. Banks are more assertive than they had been between 2009 and 2012. Assertive does not translate to aggressive, but they are definitely looking for places to put their money.

Talk to an Apex Business Advisor for an update on current activity and trends.