The right time to buy (or Sell)

We have seen a lot of promotional news items and discussions lately telling us it is a great time to buy a business.

For instance, Interest rates are as low as they are ever going to be, banks are starting to lend money, business values are lower and good deals area available.   Sellers are being told they should market their businesses now because of the pent up demand of people out of work looking to “buy a job”.  Also, Capital Gains taxes may go up next year.  These are all valid observations.

However, while these things are all good reasons to buy, buyers right now should have the same concerns they always should have.  The right time to buy is when it makes sense in terms of your current situation.  For sellers the same advice is appropriate.

If a buyer has an appropriate down payment, and finds a business they feel comfortable they can take over and run, and they can see themselves making good money and a return on their investment, then “it is the right time to buy”, whatever other factors are involved.

Likewise, is a seller has reached the point where they have to sell, either for reasons of health, or because it is time to retire, or other circumstances making it appropriate to leave, then the challenge is to arrange a sale, under current conditions, that gets them the best deal they can arrange.

In other words, any time can be the right time to buy or sell, totally depending on the individuals circumstances and whether a deal can be structured for a win-win purchase or sale.