Current Economic Update
The worst of the economic crisis seems to have passed. The attitude held by bankers and business owners is less fearful, and the expectation is for slow growth going forward. These conditions will lead to more deals in 2013 because both buyer and seller will be in a better position.
Sellers are in a better position because valuations are now reflecting the true value of a business - not discounted due to the fear of continued declines in the economy. Buyers and bankers have more confidence in the future and are more willing to take calculated risks than they were in 2009-2011
Buyers are in a better position because they now have solid "down economy" data on a prospective business. Not only can they see numbers from 06-08 when times were good, but also numbers from the worst economy in our lifetimes - 2009 thru 2011 Before taking perhaps the largest risk of their lives, they now know what to expect in good times or bad.
Given these conditions - deals will get done in 2013. Sellers will receive reasonable valuations, buyers will purchase solid businesses, and bankers will make loans that will perform.
More than ever, it is critical to work with a broker that puts together solid deals. A broker who lists a business at an unrealistic valuation will be wasting the sellers time, and setting him up for disappointment. A broker who tries to put together deals with unqualified buyers will similarly disappoint everyone in the transaction. With our 70+ years of combined experience, KBB knows what will and will not work. Put our experience to work for you and get your deal done in 2013!