Is now the Best time to Buy a Business?
We have all seen the news reports that now may be a great time to buy a home with low interest rates, forclosure prices, and flexible sellers. I have to ask though, where are the stories say now is the time to buy a busiess?
Let's look at a quick example.....
There are many businesses that are being sold for LESS THAN YOU CAN START FROM SCRATCH! This effectively places a large portion of businesses valued at LESS THAN ZERO if compared as a start point basis. Simply put, this is a fairly rare occurance on suge a large scale. When putting a value on FF&E, Leasehold, License & Permits one should compare this to starting from scratch. In alot of offerings, the business buyer today is receiving all goodwill and sometimes leashold almost for FREE.
Understand that there is added risk for this opportunity though as most companies that are offered at these values are not performing at optimal levels, however when properly forcasted in a business plan, it may be in the risk/reward paramaters that are worth pursuing.
Always get the added advice of your TEAM when considering if a purchase is right for your unique situation.
Djb Realty, LLC is a boutique Business Brokerage firm in Tampa, FL. www.DjbRealty.com