Financial Performance and Growth are Important to Buyers.

Financial Performance and Growth are Important to Buyers.

While buyers consider many factors when purchasing a business, the majority (42%) say financial performance is the most important, followed by growth potential at 26%, and location third at 15%.

In a recent article from BizBuySell, "Combination of financial performance and growth potential. For me it has to be able to pay itself off in about 3-5 years. It also has to have scalability to grow in the future as well," said a Tennessee based business buyer.

As has been the case for several years, buyers continue to favor stability when evaluating opportunities. When looking at today's market, 69% of buyers view recession-resistant businesses as the most desirable opportunities followed by thriving businesses at 38%. Twenty percent (20%) are willing to take on a little more risk in the form of a ‘fixer-upper', discounting performance for a lower purchase price, while 11% are seeking a closed business to acquire the location or assets only.

As buying a business becomes more mainstream, a new generation of entrepreneurs with perhaps less hands-on experience, but a strong understanding of return on the dollar has entered. Among the most notable entrants, 35% of today's buyers identify as a corporate refugee, exiting corporate America for the independence of small business ownership. Furthermore, 14% are recently retired, and 12% are recently unemployed.

Reach out to our firm today to start your journey towards becoming a business owner.