We’re often asked this by prospective sellers. There’s never a bad time to sell a business if you are ready to retire, are shifting your focus to other ventures, or are simply burnt out. It’s much better to sell before your lack of enthusiasm causes the business to suffer.

We are actually experiencing a “seller’s market” if you consider the relatively small number of quality businesses on the market. There are far fewer business for sale listings on the Business Brokers of Florida MLS system than there were a few years ago – even a couple years ago.

At the same time, there is a healthy supply of buyers. Some of these buyers were “downsized” by corporate employers and left with severance packages that provide the resources for a transition to business ownership. Many former corporate employees have 401(k) accounts. Corporate Consultants refers buyers to financial experts who can convert these 401(k) accounts to retirement account vehicles that can invest in the acquisition of small businesses.

Our firm targets “corporate” or “strategic” buyers as another important source of demand. Many businesses are having difficulty generating adequate internal growth in a slow economy. The managements of these firms often look to small-business acquisitions as a way to grow market share, expand geographically, or enter related fields. For example, we have recently worked with Florida air conditioning firms looking to acquire other firms in their industry.

What if your sales revenue and net income are lower than they used to be? As long as your business conditions have stabilized and it is reasonable to expect future growth, buyers will still invest. Savvy buyers realize that it’s better to buy on the way up than on the way down. Realistic buyers understand that the great majority of small businesses faced economic challenges in the last five years.

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