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Coronavirus

A Survey on the Business Buyer and Seller Market

Hundreds of entrepreneurs in the US are ready to use their cash to snap up opportunities as asking prices fall during the COVID-19 crisis.

One of the world’s most highly trafficked business for sale platforms, www.BusinessesForSale.com, with over 60,000 businesses listed, ranging from convenience stores and campsites to e-commerce and internet businesses, conducted a survey with over 200 registered business buyers which revealed:

  • 65% of business buyers in the USA have more than $50,000 in cash to use as a deposit
  • 70% of business buyers in the USA expect asking prices for businesses to come down due to the COVID-19 crisis
  • 20% of business buyers in the USA intend to finance the entire purchase of a business using their cash reserves only
  • 55% of business buyers in the USA are financing their purchase through a combination of sources

Andrew Markou, CEO of BusinessesForSale.com, says: “In the US, with interest rates at such historic lows, the cash in the bank is seen by business buyers as a liability rather than an asset, so it makes sense to put that cash into a tangible income producing business, especially if sellers are willing to reduce their asking prices for a faster sale in this climate. And of course, we have seen so much cash being taken out of the stock market, for example. It must go somewhere. Money needs to find a home and I don’t think it’s in a bank right now.”

Peter Schroth is a 56-year old entrepreneur from upstate New York who bought a ball bearing and manufacturing business in 2006. He is now searching BusinessesForSale.com for opportunities he can acquire in order to expand. He says: “I think if the business doesn’t have to be sold, it won’t reduce its asking price. But if the business is in distress or that there is an urgent need for a sale, then that’s different.”

Peter’s advice to other buyers is simple but effective: “Know what you want to buy and wait till you find a good fit. Work in that type of business first, if possible.”

For more information, about what BusinessesForSale.com does to connect entrepreneurs and buyers of businesses and franchises – go to http://www.BusinessesForSale.com



Anthea Taylor

About the author

Anthea Taylor is Content Producer at Dynamis and writes for all titles in the Dynamis stable including BusinessesForSale.com, FranchiseSales.com and PropertySales.com as well as other industry publications.

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