For anyone thinking of purchasing a business, is just now a good time to be buying? This is something I am often asked and my answer to it is yes. The reason it is a good time to be buying a business is mainly due to the fact that prices are at an extremely attractive level due to the lack of funds being made available by banks as a result of this buyers are finding it difficult to finance the business of their choice. There are however many ways round this as my colleague Bill Christie of CER Business Finance Limited will advise on.
The other reason I feel it is a good time to buy a business is that there is a lack of confidence in the market if you have drive and determination to do it you will be buying at an attractive price albeit during times of tough trading but if you can take on this challenge and see it through a difficult time then when the marketplaces pick up you will be well positioned to making good gains.
Many people mistakenly believe that businesses on the market at present are only there because they are distressed that this is not the case in fact only a very small percentage of businesses on the market are in distress situation the vast majority of selling for other reasons. These may be due to retirement or the seller wishes change of lifestyle or direction; there are many reasons why businesses for sale just now.
Once confidence grows and the banks start lending the market will pickup and inevitably the price of buying the cost of buying a business will increase; so if you are thinking of buying a business it’s a good time to do so.
Christian Lockhart,
Chris Hart Business Sales Ltd.
