Businessesforsale.com spoke with Roger Murphy, President and CEO of international business brokerage, Murphy Business and Financial Corporation, about the current state of the market. He had nothing but positive things to say...
BusinessesForSale.com: Where would you say the market is at the moment?
Roger Murphy: I would say it's less awful than it has been in the last few years. I would say it's improving. First of all there's a lot of pent up demand in the market. Buyers have not wanted to buy, sellers have not wanted to sell, there's been too much uncertainty - buyers have lacked the ability to get financing.
But things have changed, we still have a little bit of uncertainty here in the US due to the tax changes and some of the budget issues that we had, but I think people in general have gotten their confidence back, quite frankly people are tired of sitting back and waiting: they're starting to get going again and get moving.
...we all said "we'll wait this economic blip out, it's a recession, it'll be a year or two and then it will be over with."
Well, it wasn't.
We're seeing a lot more businesses coming on to the market and they seem to be a little bit better quality, a little bit larger. Those people are done waiting and they're ready to sell. We're also starting to see a lot more buyer activity, buyers are more confident now that if they buy a business they'll be successful
Business has increased as a firm, w e were up 63% last year and we expect to be up about 40-50% this year. Things are getting back on track, we expect to have a good third and fourth quarter and who knows from there. I hope it gets back to the way it was before this recession!
BFS: It sounds positive.
RM: Yeah, I really believe it is. I'm seeing the signs. People are getting moving again.
Do you think it's a case of sellers getting bored of the economic downturn?
RM: That's true. There were a lot of people who wanted to sell their business, it was time they were either tired of it or they were at retirement age. I think what happened was we all said "we'll wait this economic blip out, it's a recession, it'll be a year or two and then it will be over with."
Well, it wasn't.
It was more like 4 years of troubled times, and I think we've got tired of waiting for that to be over. I deal with a lot of sellers who saw their business decline initially, their profits decline, and they have strengthened their companies, they've worked hard and got their profits back to where they were. They've got their business in shape, a lot of the sellers are a little bit older now, and are truly ready to sell.
A lot of buyers are tired of the corporate world, they want to own their own company they've been waiting because they were afraid to move, that if they bought a business it might do that well. But I think the buyers are tired of waiting as much as the sellers are. They can see the financing is there, the small business administration loans are available again, banks are beginning to lend - it just feels like everything is positive and trying to get going again.