The seasonality in the business for sale market always surprises me, although, after twenty years, I should probably be used to how people go about the process to buy a business.
What I mean specifically is that in certain periods of the year, the industry seems to go into a funk where activity declines significantly and for no good reason. While I can understand the usual summer attitude, I do not comprehend why, as the fourth quarter begins, buyers seem to get away from their focused approach.
Interestingly enough, we always see a flurry of activity in our publishing business right after every major holiday. I guess it has something to do with the fact that people dread heading back to their jobs after a nice long weekend. These days it is a bit different as there are far fewer people who have jobs altogether.
Similarly, we see a huge increase in the number of buyers right after the winter holiday season. It is what I call the “New Year’s Resolutioners”, but I will leave that discussion for next month.
So here we are in December, in what has been a difficult year for many people, and certainly the overall economy. However, if your intention is to buy a business, now is truly an excellent period to ramp up your search, and not wind it down like most people do at this time of year.
The reasons are simple:
I have always believed that a contrarian approach works wonders in many situations. I defer to Warren Buffett as an example with his strategy of buying when everyone is selling, and selling when everyone is buying. Similarly,
If you are serious about buying a business, then do not slow down now.
As always, be sure to visit my website if you want to read some helpful articles or if need any assistance with buying a business.
Have a great week.
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