The war in Ukraine continues. Inflation is rising. Supply change shortages persist. Interest rates are increasing. So, why would buying a business now be a good idea?
There are many businesses doing very well, including many mature businesses run by baby boomers who have been running these businesses for 30-40 years. These businesses have endured recessions and uprisings and most recently the pandemic. These businesses have a lot to offer including strong financials, a loyal customer base, a solid reputation and well-defined, scalable processes. As the Baby Boomers near retirement, there are many great businesses available for sale that offer very attractive opportunities for the right buyers.
While interest rates have risen, it is important to remember that in recent years, rates have been unusually low. It’s important to keep in context that interest rates remain relatively low and the opportunity to secure financing is abundant. Three of our business brokers recently attended the 2022 IBBA Annual Conference in Denver, Colorado and met with a variety of lenders including specialized lenders seeking to fund women-owned businesses and/ or sector specific businesses such as ecommerce. We work with many lenders in the market who are seeking to help buyers fund acquisitions, and there are more options for financing than ever before.
For strategic buyers, now is a great time to diversify one’s portfolio, by acquiring a synergistic company or a complementary recession-resistant business. Given the labor shortage, acquiring a business can be a smart and strategic way to acquire talent as many businesses coming on the market have longstanding loyal teams that otherwise would be difficult to build over time.
For individuals thinking of a career change, buying a business can achieve that desired change in lifestyle and fuel the American spirit to control one’s own destiny. Leaving the corporate world behind is a growing pattern as we have all experienced how efficient and effective we can be without the demands of long commutes, set business hours and dress codes. While buying a business is understood to require hard work, it also affords a business owner flexibility and freedom. If you have decided a change is needed and are looking to acquire a business that feeds your heart and soul, opportunity awaits!
Yes, the world is crazy today, but for buyers looking to expand, grow or acquire, there is great opportunity to be had.
At BayState Business Brokers, we look forward to the opportunity to connect with you and help you find the great next opportunity. Buyers Welcome.
