Is it the hardest time ever to find a quality business to buy?

by a professional from Texas A&M University

1 year ago

I'll keep it short.

We work with clients who are in the process of buying businesses and need due diligence done on these businesses. The problem is that we have seen so many people lately who haven't found a business and have been searching for a long time. They're willing and ready buyers, but just can't find anything solid or quality.

We've helped walk through the diligence process for when they do find a business but it just seems that there isn't anything meeting their needs.

Anyone have any answers or help to this?

1 like
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17 comments

searcher from University of Texas at Austin

I think Bradley nailed it with "there are a lot of searchers looking for a well-established business, with strong cash flows, bought at a discount, with management in place and no capital required". If a business checks every box that many searchers have, 1) the business owner will likely be reluctant to sell and 2) if / when they are, it will not be at a price that many searchers want to buy in. Additionally, if a business owner is competent enough to build a business with the desirable attributes the searcher is after, they will be competent enough to garner top dollar for their business (i.e. their baby). If in the unlikely event there is a life event that forces an unexpected sale, they will likely go through trusted connections for a transition, preferring a competitor, another business owner, or family office over a random individual with no previous rapport or trust.

To me, it is similar to the person complaining that there are no good men or women to date. In reality, there are near countless options, but their standards are just way too high.

4 months ago | like reply | 0 likes

searcher

i agree with Dave. just keep on grinding. not everything is bad just because there aren't always diamonds laying around. just keep going.

8 months ago | like reply | 1 like

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