Buying a business during a recession is the best time to do it, experts say. Rather than attempting to start up a new business from scratch, your bank will appreciate you acquiring one with a steady cash flow that is already running. Another reason that the recession is a great time to buy a business is that the prices of businesses have gone down as owners get more desperate, and buyers have less funding.
Since many people are aware that the state of the economy makes it a great time to for buying a business, the heavy competition can drive up prices. However, as it can be difficult to take out loans right now, if you have the ready funding, it can put you at the top of a seller’s list. In this current state, it can be difficult for sellers to find any credible buyers. If you don’t have the cash to back up your offer, then seller funding is your best option.
It is also important to do in-depth research with the threat of business failure looming over many business owners. Search for hidden debts and losses before signing a closing agreement. An M&A intermediary can help you unearth these details that could prevent future growth of a company. Contact the region's premiere business brokerage firm, George & Company.