Times in Texas are interesting. On one hand, we have displaced executives with cash looking for solutions, and on the other the news about our economy is scaring the daylights out of buyers in the main street arena. Smart buyers that have courage to chase their dream realize this spells opportunity.
Sellers are faced with the need to step up and, in many cases, offer seller financing to get the deal done, as many owners are experiencing reduced revenue in Q1 of 2009 compared to 08′. The SBA lending restrictions recently of limiting the purchase allocation of “Goodwill” to $250,000, has certainly been another obstacle that is forcing sellers consider. My how the market has changed in such a short time.
CBA’s first objective is to search for the right buyer fit for our Clients. That includes a search attitude that stays positive in obtaining for the seller, cash at closing that is an amount acceptable to both parties, yet doesn’t squeeze the buyer to take unnecessary risk. A buyer that leaves the closing table skinny on cash is a time bomb ready to explode in the face of the seller. Not good.
Buyers can use Warren Buffett’s advice:
- Turn off the stock market
- Don’t worry about the economy.
- Buy a business, not a stock
- Consider building a portfolio of businesses.
So there you have it – solid advice that has worked for Warren Buffett. If you want to buy a business, focus on the long-term, not the immediate newsworthy trends.
If you’re selling, get everything on the table, warts and all, and make the process transparent for everyone.