Buying an existing business instead of starting a business from the ground up can result in faster cash flow and less risk for the buyer
Milwaukee, WI (PRWEB) May 10, 2012
Sunbelt Midwest has noticed an increase of business sales and buyer activity since the beginning of this year. So what types of businesses are selling? This is a question often asked of Sunbelt's business brokers. The answer really never changes despite any economic challenges. History shows that buyers, investors, private equity groups and other firms will always buy a business that is solid, growing and can show a positive cash flow.
In the first quarter of 2012 BizBuySell.com, the Internets largest business for sale marketplace, reported nearly 1800 businesses sold. Up almost 4% over the first quarter of 2011. So why all the activity? Often reasons to sell a business are personal such as retirement, health concerns, death, relocation, partnership issues, or divorce and with the aging population more businesses are emerging on the market.
“These are not the only reasons for the increase in buyer activity and closed transactions” said Ed Krajcir, President of the Milwaukee office of Sunbelt Midwest. “Lending and interest rates are low and most available businesses have proven they can withstand a recession. For the first time in recent years, many businesses showed a profit on their financial statements in 2011. There are high net worth individuals out there that have been downsized. Many buyers are ready to go on their own instead of working for corporate America. Another reason, is to diversify investments opting out of putting money into stocks and investing in businesses. Buying an existing business instead of starting a business from the ground up can result in faster cash flow and less risk for the buyer. Companies are also taking advantage of market conditions for growth acquisitions especially if they have cash available. The number of quality businesses for sale is increasing at a steady pace. Additionally, with bank lending loosening up and financing becoming more available for buyers the conditions are right to close more business transactions this year.”
About Sunbelt Midwest
Sunbelt Midwest is an elite division of Sunbelt, the largest organization of business brokers and M & A professionals in the world. With five offices in Minneapolis, Minnesota; Chicago, Illinois; and Milwaukee, Wisconsin, Sunbelt Midwest is a premier brokerage. The business brokers and M & A intermediaries of Sunbelt Midwest, consistently rank in the top performers of Sunbelt International. Sunbelt Midwest is trusted with coordinating all of the national franchisor relationships for Sunbelt. Because of this interaction, Sunbelt Midwest has a unique ability to market businesses throughout Sunbelt internationally. Sunbelt Midwest truly has a GLOBAL reach!