How The Economy Is Impacting Main Street Business Sales (forbes.com)
This article offers insights on the state of small businesses today plus lessons from past recessions that you can use to prepare for the future. Feel free to reach out to us today if you'd like additional information.
How is the economy affecting small business sales?
Small business sales have seen a slight decline of 3% in the recent quarter, although they are up year-over-year. Buyers remain generally optimistic, with many looking to acquire businesses in various sectors despite some caution due to economic conditions. The overall activity in the market appears stable, but it is noted that the small business sales market often lags behind broader economic trends.
What impact do interest rates have on buyers?
Approximately 39% of buyers reported that interest rates are affecting their ability to finance purchases, and 49% are delaying their decisions due to these rate hikes. However, there are options available for buyers, such as locking in fixed rates or negotiating terms with sellers to mitigate the impact of rising costs.
What should sellers consider in the current market?
Sellers should be aware that 40% believe they would have received a higher price had they sold last year. It's important for sellers to have realistic expectations about their business valuations, especially in light of declining revenues for some. Solid, well-documented businesses that perform well can still attract buyers, even in a challenging economy, so focusing on maintaining strong financial records is crucial.
How The Economy Is Impacting Main Street Business Sales (forbes.com)
published by Southwest Modern Data Systems, Inc.
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