PRESS-NEWS.org - Press Release Distribution
FREE PRESS RELEASES DISTRIBUTION

A Positive but Uncertain future for the Business Transfer Market, says BusinessesForSale.com

A generally positive but also fragile and uncertain economic future is the outcome of a survey of thousands of business buyers, sellers and business brokers from around the world by http://www.BusinessesForSale.com.

2010-08-13
LONDON, ENGLAND, August 13, 2010 (Press-News.org) The survey results point to many prospective business buyers being keen to capitalise on low credit rates and a perceived buyers market for business opportunities.

By far the most common reason given by the 86% who believe it's the right time to buy a business is that continuing economic uncertainty promises low prices, with about half (49%) citing this reason.

The overall picture is far from clear though, conversely an overwhelming majority (97%) of business brokers said that the sales cycle was taking longer than before the financial crash in 2008, with 43% saying it was "taking significantly longer" to sell a business. In 2008, 17% of business brokers said it took less than four months to sell a business, compared to 2% today.

Huge budget deficits in Europe means the recovery is particularly fragile, so it's an uncertain situation in the businesses-for-sale market. Positive signs include the fact that same amount of buyers thought it was easy to obtain credit as those who found it difficult, 28 and 26% respectively, suggesting that credit constraints have eased.

Whilst there are more businesses on the market than before - 63% of brokers reported a rise in the numbers of businesses on their books, there is a growing mismatch between buyer and seller expectations, particularly when it comes to the valuation of a business for sale.

Some business owners see economic green shoots as justification for putting higher prices tags on the sale of their business, whilst buyers see continuing economic turbulence as license to push prices down. This has led to a rise in incidences of buyers pulling out of deals, with 55% of worldwide brokers reporting an increase. Interestingly only 16% of buyers felt that the economy had stabilised and better times lay ahead.

60% of buyers surveyed believe that sellers' asking prices are too high, while only 37% feel they are about right, and 79% of business brokers reported that their sellers have to accept less than their initial asking price.

The businesses-for-sale market has always provided a useful economic indicator. Previous research from BusinessesForSale.com has shown a rise in business values and the quality of businesses has often presaged an economic improvement a few months later and vice versa.

Though there was little overt positivity about the economic climate, 64% of buyers said they were felt they were more likely to buy a business over the next 12 months than at the same juncture 12 months before.

Traffic statistics from BusinessesForSale.com are striking, in particular enquiries since the financial crisis began at the tail end of 2007. The high watermark over the past four years was December 2007, when there were just over 70,000 enquiries made on business opportunities.

As the crisis took hold, enquiries fell steadily until reaching a nadir of around 33,500 during the month of November in 2008.

A significant rise was recorded the following April, from 49,500 to 57,800. This recovery in enquiries presaged the economic recovery by around six months, as the country started pulling itself out of the recession in the second quarter of 2009.

However, several business transfer agent commented that they'd seen an appreciable rise in the amount of consolidation in industries, which offers evidence that the global recovery strengthening.

In terms of which sectors are performing strongly; property-related businesses - always a bellwether for the economy's health, so it's notable that only 11% of global agents observed a sales rise in this sector compared to 30% of brokers witnessing a fall in sales.

54 % of brokers reported a surge in sales of food businesses, the largest rise posted, which could be dubbed a 'flight to safety' to an industry widely considered as relatively recession-proof. The second steepest sales rise was reported in services with 33%.

Retail and leisure, which are more susceptible during downturns as consumers reign in their spending, were the biggest fallers, 36% and 33% respectively, in the UK. There's a clear discrepancy with demand here because these sectors are very much in demand among buyers, as 29% and 25% respectively are interested in retail and leisure businesses. Evidence points to a shortage of quality businesses in these sectors.

Jeremy Mandell, head of marketing at Dynamis, which runs BusinessesForSale.com suggests the following reason for the shortage of mid-market vendors: "Owners of high quality businesses could be delaying their exit until their business's value improves along with the economic climate. Owners of struggling businesses naturally have good reason to sell up - to get out before they go under."

Another business transfer agent observed: "Extremely low interest rates deter business owners from selling their businesses as they can nowhere near replace the income they derive from their businesses when they come to investing the capital in the proceeds of sale."

One possible and worrying conclusion is that perhaps then buyers are too optimistic about the market, and sellers are keen to get rid of lower quality businesses before they go under. The fact 80% of sellers are willing to drop their asking prices backs this up.

If buyers flood the market, prompted by unfounded optimism, it could re-inflate the asset bubble and push us into a double-dip recession if the businesses they have bought go bad.
If, as some brokers fear, the quality of businesses is low and the economy does return to recession, then a surge in liquidations and a deluge of bad debt could follow.

Another conclusion of course is that this is just part of the natural cycle of boom and bust, and we're about to see a new wave of successful, new business owners drive the economy through its next phase of growth.

Certainly if traffic statistics from BusinessesForSale.com are to be believed - and in the past they seem to have always predicted the market a good six months in advance - then current traffic points to a strong sustained rise in the business-for-sale market and consequently the economy.


Notes to Editors
1. BusinessesForSale.com was established in 1998 and is published by Dynamis plc - a privately owned company based in London, UK.
2. The site features over 54,000 businesses for sale in 130 countries.
3. More than 1.2 million users visit the site every month.
4. For more information please contact Jo Dalton on 020 7324 1948.

Dynamis plc is an online publisher, repsonsible for BusinessesForSale.com, FranchiseSales.com, BusinessWings.co.uk and BusinessOpportunities.com. The titles are all in the business transfer market and look to inspire and educate entrepreneurs and provide them with a marketplace in which to find and buy business opportunties.


ELSE PRESS RELEASES FROM THIS DATE:

Achieve Lasting Wellness At New Bridge Foundation Drug And Alcohol Treatment Center

2010-08-13
New Bridge Foundation rehabilitation facility has been serving the community for over 40 years and is regarded among the most successful alcohol and drug treatment centers in California. All of our substance abuse treatment plans are tailored to fit the needs of the individual and are result-oriented and solution-focused in a nurturing and structured environment. The goal of New Bridge Foundation's treatment center is to educate, enlighten and improve the quality of the lives of our clients. Our outcome studies reveal that our graduates enjoy lives free from drug and ...

Technology transfer out of the Blue

2010-08-13
It's a quirk of technology, but not all websites can be viewed on the new iPad and mobile devices as they can on laptops and desktop computers. It's that anomaly that is causing businesses a headache, but one Berkshire company has set out to correct this issue with their new design service. Linear Blue, a web and database development company based in Hurst, is redesigning websites utilising HTML5 which enables websites to be viewed on all desktop and mobile platforms. One of the first Reading companies to trial it is Rabbits Vehicle Hire. Rabbit's Steve Dore said: ...

The Kat Burki Essence: A Twist of Tuberose, will be at the NYIGF (New York International Gift Fair) August 15-19, 2010, with an entire new line of natural scents.

2010-08-13
Kat Burki Inc., Southport CT, a chic and sophisticated retailer offering home furnishings and body and bath luxury products, has announced new additions to their elegant and popular body and bath, Signature Collection. The new offering includes five new refreshing fragrances that have been added to the classic five fragrances currently available in their bath & body line of soaps, natural soy candles, and body crèmes. Kat Burki, founder of the company, describes the new fragrances... "I wanted to add to our body and bath signature collection with invigorating, comfortable ...

WhatsOnWilmington.com Named 2010 Wilmington Webbie Award Winner

2010-08-13
WhatsOnWilmington.com, a website dedicated to Wilmington, N.C. events, has been named the 2010 Wilmington Webbie Winner by Encore Magazine. The Webbie Winner is awarded each year to the best local website (nominated by Encore readers and decided on by Encore employees). WhatsOnWilmington.com is the second annual Webbie Award Winner. WhatsOnWilmington.com is a comprehensive online events calendar dedicated to the greater Wilmington, N.C. area. Each event submission is human-edited by the website's founder and publisher, Ranald Totten. In addition to event submissions ...

LeadMaster Announces Partnership with MarketNet Services

2010-08-13
LeadMaster, a leader in sales and lead management, is proud to announce its affiliate partnership with MarketNet Services, LLC. As affiliate partners, both companies will evaluate customer inquiries with a goal of aligning those potential customers with the lead management solution best suited to their needs. LeadMaster is well suited for those interested in simple, yet robust self-service lead management solutions. MarketNet is positioned to assist those clients with more complicated lead management challenges. LeadMaster has been a leader in sales and lead management ...

AiRISTA's Wi Fi Sensor Technologies

2010-08-13
AiRISTA's Unified Visibility Solutions utilize Wi-Fi Sensor Technologies to automate hospital's refrigeration unit temperature logging and monitoring. Sparks, Maryland - August 4, 2010 - AiRISTA (www.AiRISTA.com) announced the deployment readiness of its highly accurate Wireless Temperature Logging and Monitoring System at local medical center. Sy Sajjad, AiRISTA's CEO states "Mature and highly accurate wireless sensor technologies are very well suited for replacing the current error-prone and time consuming manual logging and continuous monitoring of the conditions ...

Mayne Stage Announces New Shows, Tickets on Sale Friday

2010-08-13
Mayne Stage (1328 W. Morse Ave.; 773-381-4554) announces several new shows for its fall performance schedule including an evening of Brazilian music, artists from the Chicago Guitar Festival, acclaimed indie rock music and more. Brazil in Chicago—A Tribute to Breno Sauer, August 14 On Saturday, August 14 at 8 p.m., transport to South America with the upbeat sounds of Brazilian music with "Brazil in Chicago—A Tribute to Breno Sauer." The first set at 8 p.m. presents The Copacabana Trio featuring Luciano Antonio on guitar and vocals, Neusa Sauer on vocals and Geraldo ...

Reliable Manufacturing reveals date of new What Tool? When? Master Class

2010-08-13
Change management consultancy firm, Reliable Manufacturing, has announced details of its next What Tool? When? Master Class with industry experts Ron Moore and Andrew Fraser. The two-day event will be held at the Holiday Inn Runcorn, near Manchester Airport, on Monday 20th and Tuesday 21st September 2010. There are hundreds of different improvement tools designed to enhance operational performance on the market today - Six Sigma, Lean Manufacturing and Root Cause Analysis, to name but a few. With this multiplicity of methodologies available it is hardly surprising that ...

Deacom Hires Ted Roberts as Senior Sales Engineer

2010-08-13
Deacom, Inc., provider of an integrated accounting and Enterprise Resource Planning (ERP) software package for mid-to-large-sized building component and batch process manufacturers, announces that Ted Roberts has joined the company as Senior Sales Engineer. He reports to Jay Deakins, president, and will help drive new integrated ERP software sales for the company. Roberts brings seventeen years of executive-level selling experience to the Deacom sales force. Beginning his sales career as a manufacturer's representative, he quickly became a top performer by adding 20% ...

HCGWeightloss.com Urges Obese Individuals to Consider HCG diet and Break the Cycle of Yo-Yo Dieting

2010-08-13
Are you seeking a fast way to shed all of that excess body fat you have been dealing with for years with little to no exercise? Are you looking for a diet plan that is not only safe but also effective? Do you want to partake of a diet that can change your eating habits now and in the future too? Have you tried one or more diets that promised long-term weight loss result, but quickly gained back what you've lost after the diets end? You are not alone. According to a report by MSNBC, over 80% individuals who have lost weight regain all of it, or even more, after two years. ...

LAST 30 PRESS RELEASES:

Scientists model 'true prevalence' of COVID-19 throughout pandemic

New breakthrough to help immune systems in the fight against cancer

Through the thin-film glass, researchers spot a new liquid phase

Administering opioids to pregnant mice alters behavior and gene expression in offspring

Brain's 'memory center' needed to recognize image sequences but not single sights

Safety of second dose of mRNA COVID-19 vaccines after first-dose allergic reactions

Changes in disparities in access to care, health after Medicare eligibility

Use of high-risk medications among lonely older adults

65+ and lonely? Don't talk to your doctor about another prescription

Exosome formulation developed to deliver antibodies for choroidal neovascularization therapy

Second COVID-19 mRNA vaccine dose found safe following allergic reactions to first dose

Plant root-associated bacteria preferentially colonize their native host-plant roots

Rare inherited variants in previously unsuspected genes may confer significant risk for autism

International experts call for a unified public health response to NAFLD and NASH epidemic

International collaboration of scientists rewrite the rulebook of flowering plant genetics

Improving air quality reduces dementia risk, multiple studies suggest

Misplaced trust: When trust in science fosters pseudoscience

Two types of blood pressure meds prevent heart events equally, but side effects differ

New statement provides path to include ethnicity, ancestry, race in genomic research

Among effective antihypertensive drugs, less popular choice is slightly safer

Juicy past of favorite Okinawan fruit revealed

Anticipate a resurgence of respiratory viruses in young children

Anxiety, depression, burnout rising as college students prepare to return to campus

Goal-setting and positive parent-child relationships reduce risk of youth vaping

New research identifies cancer types with little survival improvements in adolescents and young adul

Oncotarget: Replication-stress sensitivity in breast cancer cells

Oncotarget: TERT and its binding protein: overexpression of GABPA/B in gliomas

Development of a novel technology to check body temperature with smartphone camera

The mechanics of puncture finally explained

Extreme heat, dry summers main cause of tree death in Colorado's subalpine forests

[Press-News.org] A Positive but Uncertain future for the Business Transfer Market, says BusinessesForSale.com
A generally positive but also fragile and uncertain economic future is the outcome of a survey of thousands of business buyers, sellers and business brokers from around the world by http://www.BusinessesForSale.com.