I am neither an economist nor psychic, so while I always am always happy to provide my opinion, I avoid making hard predictions
however, when there is any decline or slowdown in the economy, people look for answers and hope.
What I mean specifically is that it is highly likely in a down period or just after that most businesses a buyer may consider purchasing will have now completed a difficult period.
You must dig past the urgent issues of any recent declines and spend time accessing the important ones of what the future will bring. As I told you, I am not a psychic, and so I avoid getting delusional about the future of any business for sale that I consider buying. I would always rather err on the side of conservatism in determining whether the immediate past performance is sustainable instead of dreaming about the allegedly opportunistic things I can do with the business in the future.
How are the customers themselves performing? What external factors have contributed to any past decline? Are these issues that can be easily resolved? If so, when? If it is an “anyone’s guess” answer, then you may want to stand clear. It is far better and has proven to be infinitely more plausible when the owner can be responsible to dictate and manipulate the results. So you need to determine specifically what it is that you can do to guarantee the business will be sustained, and then grow under your ownership.
This comes back to what I have been teaching and preaching for two decades to business buyers.
Conversely, when you apply whatever it is that you do best to a business that requires that specific talent, the business will ultimately flourish, regardless of the short-term economic climate. And with the current market conditions, you can easily leverage the deals terms way beyond normal purchase prices and structure an incredibly favorable purchase once you know how to do it.
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