What’s the current environment like for selling a business?
It’s one of the best markets since the late ‘90s. Buyers are aggressive because they have cash and feel good about the economy, while banks are helping by providing acquisition debt. At the same time, sellers see what a good time it is to sell, given the activity levels of buyers and historically high prices. It’s a liquid market, which isn’t always the case. Toward the end of 2005 and on into 2006, it appears that the growth in the number of deals has started to level off. We don’t believe that transaction volumes are going to go down, we just see them leveling. What types of buyers are driving the market? The strategic buyer has been more active in recent periods and is looking to benefit from the synergies that can accompany a purchase, such as with a target’s customers, products, channels and geographic locations. Both public and private acquirers are aggressively seeking growth through acquisition to complement internal growth initiatives. There are also private equity firms that
Buying is a good idea while selling isn’t, why? 2020 that’s why :). When I come to think of it actually, none is recommended doing in 2020, now 2021 which is basically starting worse than the last year did :). Regardless of the economical situation now, some business may even profit from it, food catering services for example. Having done a calculation I came to the conclusion that I spent three times more money on food delivery this year, considering that I am an IT specialist and have been working from home even before the pandemic.
