State of Business Sales in Southwest Florida

Selling or buying a business?

It is the economy stupid. Resurrecting a often heard phrase from the '92 Presidential election, there is little question it is the one topic at the forefront of every business owner's mind. In a time when unemployment numbers have reached double digits with claims of it being closer to 20%, and coming off of two consecutive quarters of
GDP growth, the debate whether we have bottomed out and into recovery rages.

So, how does this impact business sales here in Florida?

According to the South Florida Business Journal, “there are signs of life in the field of buying and selling businesses. Fourth quarter 2009 figures for South Florida show a rebound in sales prices, prices paid as a multiple of cash flow and the number of businesses sold.” What makes this even more encouraging is 4th quarters are usually the slowest of the year. And, although overall transaction in Florida were down about 15% from 2008, transactions were up quite significantly 2nd half of 2009 vs. the 1st half. Fourth quarter 2009 was the 2nd best 4th quarter on record. Momentum in business sales are certainly building. I would go as far as stating the economic slump of 2008 and 2009 has weeded out the weak companies and excess competition.

How does this impact me?

Businesses that have survived can be transacted at near historical multiples with significant upside when the economy begins to improve. So lets continue the momentum. Call us to help you with your business transaction at 239-405-8818, email me at eric@bluechipbizsolutions.com, or visit my webpage at www.bluechipbizsolutions.com.