As the global crisis affects countries around the world, more and more business owners are throwing in the towel and turning to selling their business.
A spokesperson for 123BusinessesForSale.com, a business for sale internet portal says: “Many business owners are finding it hard to compete in today’s business environment and turning to the easy way out, by putting their business up for sale”. The market also appears to be shifting from a seller’s market to one controlled by the buyers: “If three – four years ago businesses sold in 90-180 days they are now taking twice as long to sell – the market has become a buyer’s market”.
What is also worth noting is how the price of existing businesses for sale has dropped dramatically. “As business owners begin feeling the crunch and finding it harder to cover costs, let alone make a profit anymore, many owners are reducing their price drastically.” says Greg Schellhammer, a business broker specializing in selling bars, restaurants, nightclubs and hotels in Spain. Greg also notes that “as the tourism season comes up and airlines as well as hotels are predicting collossal decreases in customers, many bars, restaurants and discos are turning to business brokers to sell their business before it is too late”.
“Nevertheless, there are still business owners – as we know in Spain - trying to sell for the price of 2007 or 2008 (leasehold), some have reduced their price by 20%; but they can all wait for years to find a buyer if ever at those prices!” says Greg.
The huge market of buying and selling business also has big players such as GM and other automakers involved. With GM in talks to buy back Delphi Steering. Other big names include AIG which is currently holding off talks on the sale of Asian business as it struggles to survive the global economic and financial crisis.
One thing is for sure, the more prices of businesses for sale drop, the more buyers with cash show up to take part in the game.
Image by justinsomnia under Creative Commons.
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I’m just curious, if the owners are selling their businesses who will buy then in this chaotic economy? If I were them, they should think of other alternative rather than selling it -> I pity the workers who will be left unemployed. this is the right time management and employees unite for a common good.