From the Trenches - Interview With Connecticut Business Broker David Richman
Sit-Down Interview With Business Broker David Richman
What are your thoughts on where business acquisition & sale market activity is heading over the next 3-6 months?
In New England, the second and third quarters of the year are typically slower with buyer activity but are a great time to acquire new listings. This is the busiest season for sellers. The plus for brokers is the summer lull gives extra time to prepare for a marketing push at the end of August when buyer activity picks back up.
What do you see as the most significant current threats out there that could adversely affect the current bull market for business acquisition & sale?
Buyer confidence is most important. A significant source of this is from the banking industry and SBA. If it's easy to obtain a loan with a good rate buyers will be more aggressive in their pursuit of business opportunities.
What do you see as the top three reasons right now is a great time to SELL your business?
1. Baby boomers are looking for retirement options, leaving their established and profitable companies available for buyers.
2. When considering loan options for buyers, it's still advantageous to buy an established company with good cash flow and room for growth rather than work through the difficult and uncertain start-up process.
3. New England is a great place to live and work. Younger entrepreneurs are looking to establish in this area.
What do you see as the top three reasons right now to BUY a business?
1. It's always a buyer's market. There are more sellers than buyers.
2. The SBA has many great programs and lenders have streamlined the loan process. There are also advantages of buying a business and real estate together.
3. New England is a great place to live.
What are some of the questions you should ask when choosing an advisor to help sell your business?
1. How long will it take to sell my business. This should be 9-12 months. In some industries businesses "move" faster, but for most in New England, this is the start-to-close time frame.
2. Do you have administrative staff to help you manage your listings?
3. How many listings do you currently have and what industries?
How would you rate the current political environment related to small business growth, business acquisition & sales?
3/5
What are your thoughts on transaction terms for buyers & sellers in the current market?
The seller should expect a fair market value for their company. This is sometimes in line with expectations, sometimes it’s not. This will vary per industry and regional market.
Thoughts on business valuations in today's market?
There will always be situations when a business requires a valuation such as the death of the owner, divorce, and shareholder disputes.
BizNexus -Learn More From Our YouTube Playlist:
BUSINESS ACQUISITION
Have you checked out our podcast?
THE BIZNEXUS ROUNDUP
Quick & dirty interviews, war stories & tips from the trenches of business acquisition, growth & sale. We aim for value, efficiency & fun, so you'll walk away with something useful to take with you along the journey of buying, growing & selling a business.