An Inc Magazine article suggests that now is a good time to sell a small business. Sales activity is up, and buyers are plentiful.
Several reasons account for this trend:
- Private equity firms and venture capital firms raised funds several years ago with capital deployment time limits that are about to run out. They need investments before the time limits expire.
- The Internet has made it easier to find businesses for sale, even by foreign nationals. Buyers from outside the U.S. are actively seeking American businesses to buy. They find potential acquisition candidates through the Internet, and visit the U.S. to check them out. If the deal works out, they apply for Visas.
- More out-of-a-job executives are looking for businesses to buy.
And what are some of the other acquisition trends? Smaller sized businesses are being sought out. Instead of requiring US$20 Million in revenue, institutional buyers are considering businesses of US$5 Million. Also, the odds are greater now that a buyer will be a company rather than an individual.
For additional context, see the small business market trend we have identified over at our sister site, TrendTracker: Trend: Small Businesses Change Hands.