American Business Market Influenced by Covid-19
Hundreds of entrepreneurs in the United States are ready to spend their money to get new opportunities, as prices for selling businesses are falling in the context of the Covid-19 crisis.
A survey of more than 200 American business buyers revealed:
- 65% of US business buyers have over $ 50,000 in cash to be used as a deposit
- 70% of US business buyers expect prices for companies to fall due to the Covid-19 crisis
- 20% of US business buyers intend to finance the entire acquisition of a business using only cash reserves
- 55% of US business buyers finance their purchases through a combination of sources.
An interesting aspect is that interest rates have reached an all-time low, and because of this, bank deposits are perceived by business buyers as a liability rather than an asset. So, it is a logical move to invest this money in a business that produces tangible income, especially if the sellers are open to negotiations, to get a faster sale, in this new socio-economic climate.
For example, a 56-year-old entrepreneur from upstate New York who bought a production company in 2006 is now looking for opportunities to expand. He says: "I think that if the business does not have to be sold, then the owner will not reduce the asking price, but if the business is in danger or there is an urgent need for a sale, then the situation is different."
Peter's advice to other buyers is simple but effective: “You need to know clearly what you want to buy and wait until you find the business that suits your wishes. If possible, you should already have some experience in that field. "
If you want to sell your business, you must first find out what you need and turn to qualified consultants. Our team is at your disposal!