Half of the survey respondents indicated they expect the economy to be slightly down (41 percent) or significantly down (10 percent) in 2008. Nearly three-quarters (73 percent) say 2008 will be a buyer's market. A similar number (76 percent) believe that more businesses will be available for sale in the coming year and 80 percent are predicting that they will sell more companies.
"While it's an election year and there are concerns about the economy, the continuing trend of baby boomers looking to sell and retire will provide a lot of opportunities this year," said Cress Diglio, IBBA chair and president of Corporate Investment International, Orlando, Florida. "But it's also clear in the survey that many IBBA members feel that money will be tight and the number of sellers will easily outpace the number of qualified buyers."
IBBA members also expect the manufacturing, service and distribution sectors to continue to be the most attractive to buyers. "Certainly, the type of business is important for a potential buyer," says Rob Firestone, IBBA board member and principal and general manager of Bluestem Resources Affiliated Group, Tulsa, OK. "The historical performance of a business is also critical. In a buyer's market, purchasers are more selective. They search for companies that have demonstrated success with sustainable market share and growth opportunity."
Buying or selling a business is often the largest financial and quality of lifestyle decision a businessperson will make. "For most business owners, selling an existing business is a one time deal that can have a significant impact on their future," Diglio said. "They must be prepared and understand what it takes for the sale process to work properly. For all of those reasons, employing the assistance of a professional business broker or intermediary is usually a wise investment."
