A lot has changed in the U.S. business market over the past couple of years. Whereas before, potential business buyers could take their time to review and ponder on every aspect of acquiring an existing business, now is the time to strike while the iron is hot. Businesses, just like real estate, are being sold in record time. Some businesses have even sold on the same day as listing while others already have a list of potential buyers lined up before even announcing interest in selling!
There are several reasons why individuals and companies interested in purchasing existing businesses need to act quickly in today’s market conditions:
Political and Tax Pressure
Many business owners are looking to sell to avoid impending changes to the country’s capital gains tax laws. The current administration’s proposal would nearly double this tax, hammering profit margins and requiring major business restructuring for many companies to survive. Instead of taking on these required changes, business owners are simply cashing out now while the capital gains tax is still low. This is a huge buying opportunity for buyers who know how to cut expenses, automate processes, and network with suppliers. By purchasing a business with an existing, loyal customer base and providing them with the same level of quality in product or service while at the same time lowering operating expenses, savvy business buyers can capitalize on these upcoming political changes.
Diversification
If the COVID-19 pandemic showed businesses anything, it’s that they need to diversify their offerings. Businesses that pivoted well into pandemic-friendly products and services, such as quick delivery, ghost kitchens, and other convenience services, are selling for top dollar as buyers view them as more resilient to economic pressure. Businesses that held fast to their pre-pandemic offerings suffered the most and are now selling for huge discounts. As an established business owner looking to diversify, swooping in on these opportunities to acquire existing businesses that just couldn’t adapt to pandemic pressures is a no-brainer, assuming you know how to modernize their offerings.
Increased Competition
Because there are so many discount opportunities out there right now, there’s also more buyer interest than ever. This increased competition means buyers must bring their A-games to the table right from the beginning. Over are the days where buyers could lead sellers along for weeks or months while they consider every aspect of the deal or try to negotiate a lower price. Businesses are priced to move, interest in selling it at an all-time high, and private buyers are more than willing to fill in the gaps left by banks who are hesitant to loan.
Assistance with Tampa-area Business Purchases
If you’re interested in purchasing an existing business in the Tampa Bay area, Tampa Business Brokers Inc. is the call you need to make. We keep our finger on the pulse of Tampa’s business market, so our clients are the first to hear of new opportunities in the area. Whether you’re ready to buy or sell your business, we’ve got the knowledge, resources, and experience to get you the very best deal. Call us at 813-981-7814 or contact us online to get started today!