Most business buyers are not hesitating to pursue opportunities. They're moving
forward and looking for strategies to offset higher borrowing costs, with 58% intending
to negotiate a lower purchase price, the most head-on method. Buyers are also
shopping around for lower rates (42%) or alternative financing methods (42%),
increasing the down payment (30%), and seeking shorter loan terms (21%). For
particularly strong businesses, the ultimate concession will likely be in the form of an
accommodating deal structure.
Max Friar, managing partner of Calder Capital gives his perspective on the 2024
business-for-sale market, " This year continues to be marked by what is in my opinion a
lower supply of high-quality (consistent, strong cash flow) businesses versus persistent
demand from buyers - entrepreneurs, strategic, and private equity ‘bolt-on';
acquisitions. Despite rates remaining persistently high, valuations and deal structures
remain strong because buyers want to transact, and they are fighting each other for the
quality deals. "
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