Entrepreneurs are still finding the finance to buy businesses and are taking advantage of competitive prices.
That is the conclusion of the recent BusinessesForSale.com survey of 1,000 potential business buyers.
- 48% of respondents saw the current economic conditions as an advantage when buying a business.
- 66% found banks to be accommodating to their needs, although 33% found their search for funding more difficult than expected.
- 28% viewed buying a business as a safer investment than equities or residential property.
- 36% of respondents believed that businesses for sale were more competitively priced as a result of the downturn.
- 60% of business buyers saw business ownership as a way of taking control of their life in difficult times.
- 11% admitted they wish they had bought 6-12 months ago while an optimistic 19% think it will be better to buy a business in 6-12 months time.
The survey included responses from buyers at various stages of the buying process, over 50% of whom stated that they did not or will not start looking for finance until the time was right - i.e., when they've found a suitable business for sale, contacted the seller and requested all the necessary information.
Of those business buyers who have run into problems:
- 46% said they were going to have to invest more than they hoped to secure funding.
- 36% said the lender required more information on the business in question.
- 18% said their preferred lender was unable to provide a competitive rate of interest or loan terms.
When asked specifically whether the credit crunch was adversely affecting them, business buyer views were mixed.
- 30% No - I think there are more competitively priced businesses on the market.
- 14% No - I have encountered no more problems than expected in securing my funding.
- 25% Yes - There are fewer suitable businesses coming onto the market.
- 16% Yes - I am finding it quite difficult to find the funding I need.
- 15% Yes - I will have to personally invest more than I want to in order to get funding.