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Selling a Small Business in a Down Economy:

Guest post by: Mark Wood

Article Overview: How is the market? Is This a Good Time to Sell?

Selling a Small Business in a Down Economy:

With all of the negative economic news we have had in the past year and a half or so, many business owners may think that it is not a good time to sell their business. But fortunately for those owners contemplating the sale of their businesses, that is not necessarily the case. Successful transactions are still taking place, and are even beginning to show signs of rebounding.

Due to perceived pricing concerns, many owners with good businesses will postpone offering their company for sale in a poor economy. But the formulas that are used in pricing small businesses do not change for many industries with a down economy. Certainly many businesses that have seen dramatic declines in their bottom lines will see those reductions reflected in their value. However, those not impacted as much as the general market should see an increased demand for their business. In fact, layoffs and downsizing increase the pool of potential buyers. This results in a larger pool of buyers competing for a smaller number of good businesses. The effects of supply and demand in the marketplace have not changed and will continue to drive value for good businesses.

Capital gains rates, which most business sellers can take advantage of are at all time lows and interest rates for business loans are being offered at very favorable rates.

Selling a business may well represent the culmination of one's life's work to that point in time and is often a seller's single largest asset. Though some sellers may have mixed emotions about letting go of the business they have nurtured and developed through good times and bad, they are usually excited about the freedom and financial independence that the sale represents. To have the time and resources that enables them to move on to the next step in their lives, whether it be retirement, a new business venture or the pursuit of other interests such as travel or volunteer work is a very exciting prospect for most and one for which they have worked hard to achieve.

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Article Tags: Business Broker, business sale, Business Sales, Buying a Business, buying a business, down economy, good time, Mark Wood, pricing a business, sale of small business, selling a business, selling a business online, Selling a Small Business, small business, Small Business, value of small business, valuing a business, VMW Business Brokers



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