A Buy Side Uptick?

ATLANTIC HIGHLANDS, NJ – March – Being in the business of assisting business owners and buyers to match each other, we have noticed a significant ‘uptick’ in recent weeks on the buy side. Combining the effects of more readily available financing and few attractive alternate investment vehicles in the stock/debt markets, buyers are increasingly turning their thoughts to buying a business as a means to increase yield (and to have fun and freedom in the process). No question, the macro economic environment remains challenging, however, the ‘early bird’ will get the best ‘pickings’ before the economy turns up again, and most recently, we put two deals under contract based on exactly such a thought process. It appears that viable businesses never ‘stay’ with us for too long of a time, and a hesitant buyer will ultimately lose out. Questions remain around the most appropriate valuations and the recently revised SBA financing guidelines, however, let us assure you with a motivated buyer and a motivated seller, no hurdle is too high to bridge an expectation gap and to close a deal.