To all the usual reasons that small businesses are put up for sale – personal problems and personnel squabbles among them – add economic woes this year. But even as for-sale listings rise around the country, so is buyer interest.
“When economic times get tough and people can’t find a job, they will go out and buy a job,” said Ronald Hottes, president of the Business Team, a broker in Torrance, Calif.
The problem for owners is that prices appear to be softening.
The nation’s largest listing site, bizbuysell.com, recently had 50,000 businesses for sale, vs. 43,000 the same time last year, said Michael Handelsman, bizbuysell’s general manager.
Brokers say buyers are often retirees looking for a second act, or laid-off executives looking for a business to run.
Retirement, illness, divorce, death – and simple burnout – still drive the majority of owners to sell, but in the rocky economy, some otherwise solid businesses are now having a hard time.
An unpleasant truth is that many, if not most, businesses don’t sell.
The main reason, according to Louis Vescio, owner of Sunbelt Business Brokers in Melbourne, Fla., is that “most small-business owners keep bad records,” so buyers cannot get an accurate financial picture.
Photo by a51media.
Winning Startups on August 1st, 2008 at 5:56 am
That’s a great idea. I’m going to check out this bizbuysell and see if there are some cheap opportunities. Wish I had looked into Sitepoint too before starting my website. Some cheap sites out there as well
BizAg on August 4th, 2008 at 2:45 pm
I’ve noticed the increase as well, as we’re currently tracking over 100,000 businesses for sale.
cassy on August 10th, 2008 at 7:46 pm
I think one problem there is mismanagement, business can’t really be successful.