Connections Groups

The Business Networking & Social Organization for Central Florida

Selling or Buying a Business??--the Law of Supply and Demand applies

As the economy slowly recovers, buyers’ confidence level increases and with that comes a greater demand for businesses available for sale.  Buyers, who were waiting for the bottom of the recession to hit prior to making a decision on buying, now find themselves competing for quality businesses in this market.  However, as can be expected, businesses which survived the recession now have less competition and with less competition come increase market share and profitability.  In fact, business valuation has slowly increased over the last couple of years.

 

Simply stated, due to increased profitability and value, business owners are not as willing to sell their business, and if they do, they want more value for it—creating in fact, lower inventory of quality businesses for sale.  This brings me to my point regarding the Law of Supply and Demand—as supply of businesses for sale decreases (or buyers’ demand increases) so do higher prices.

 

Lower inventory of businesses for sale (supply) with more buyers in the market (demand), mean that buyers will more than likely pay more for a business today than a year ago.  So, this can be great news for those who are thinking of selling their business. 

Additionally, since the economy will eventually fully recover, values will continue to increase.  This means that buyers should buy now, as well.  Waiting for tomorrow may cost them thousands of dollars more.  Note:  This may also be good news for Business Brokers—greater value normally means more commission.  However, greater value is offset by lower inventory of businesses for sale, which normally means less commission.  So, break even? 

 

So, what am I saying?  If you ever thought of selling or buying a business, and given the Law of Supply and Demand, this is the right time to do it!

 

Should you want to know more about buying or selling a business in Central Florida, please contact Fernando Simo at 407-361-8886, email me at fsimo@tworld.com or please Click here for more info.

Views: 15

Comment

You need to be a member of Connections Groups to add comments!

Join Connections Groups

Check it out...

Sponsors:

Do you write?
Take photos?
Dine out?
CONTRIBUTORS

WANTED!


Click to "Refer & EARN!"

$400-$1000
referral commissions
"This has created a referral BRUSH FIRE for my business."
...Scott Sheaffer,
Mortgage Broker
407-443-0348
for more info.  

Be a Sponsor!

 

Would you like to...
** Have YOUR banner ad here on the MAIN Page?
** Get featured in the email newsletter to ALL 10,000+ Connections members?
** Be on the "Featured Members" leaderboard OR have your EVENT featured?
>> CLICK HERE for info

 

Shop Nest Bedding® Now!

© 2021   Created by Sue Copening.   Powered by

Badges  |  Report an Issue  |  Terms of Service