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Buying and Selling Businesses

January 27, 2014

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Here’s an article in the current edition of Inc. magazine that might be of interest to business owners.

My observation of the BC market is this:

– lots of baby-boomer business owners are hanging on in order to improve their financial statements after the 2008/2009 downturn

– US private equity firms and firms from Ontario are sitting on lots of committed capital and have to put it to work. That’s having the effect of making it a sellers’ market for businesses with more than $5,000,000 EBITDA.

– There is a dearth of really good small businesses with $500,000 to $1,000,000 EBITDA which is also making that a sellers’ market.

– The next five years will see a shift with an increase in the number of businesses for sale and fewer buyers after having already put their capital to work.

– It will shift to a buyers’ market.

Enjoy the article.

http://www.inc.com/magazine/201402/jennifer-alsever/business-for-sale-market-booming.html

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