Buying a Business??--Now is the time!!


Posted by: Fernando Simo in Business Financing on Sep 15, 2009

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In one of my recent articles, I discussed the impact the current recession has had on the Business Brokerage world. I indicated that one of the major reasons for the negative impact has been the inability of buyers to get financing to purchase a business, particularly larger businesses-- I recently heard that the average price reduction in Florida businesses sold over the last two years, compared to the previous two years, is between $150-$200K. 
 
Now for the good news! The light at the end of the tunnel is getting really bright!! Buyers normally get financing from three key areas: Commercial Banks, the seller, and the Small Business Administration (SBA). I believe these areas are becoming a lot more flexible in providing financing today than just a few months ago. As the financial markets and the banking system go back to some degree of normalcy, Commercial Banks are more receptive to providing business loans. Likewise, sellers are beginning to understand that without a significant amount of seller financing, their business will not sell and they may have to wait months, or years, to sell their business.  
 
Most importantly, the SBA became a lot more flexible by making changes to the acquisition policies impacting purchases which included Intangible Assets. These changes give “Preferred Lender Providers” more flexibility to provide business loans WITHOUT going through the SBA for final approval. In addition to providing “PLP’s” with greater flexibility, the changes give buyers more leeway in what regards the minimum amount of equity they must invest for the project.
 
Wonderful, right?? So, with greater levels of financing available and businesses sale prices at their lowest level, there has never been a better time to buy your dream business. Now is the time!!!
 
Should you want to know more about buying or selling a business in Central Florida, please contact Fernando Simo at 407-361-8886, email me at fsimo@tworld.com or please visit my webpage at www.bizbuyorsellflorida.com .