“In terms of buyers, there is no longer a reluctance for buyers to call in and enquire about businesses that are listed. 2009 was a quiet year in terms of buyers as the level of apprehension in the market was high” said Steve Skrlac, a business brokerage professional with Coldwell Banker Pinnacle. “Sellers of profitable businesses, it seemed, were not going to market as they rationalized that small business valuations were low due to the economy and they felt that they would not have received their price” said Skrlac.
The impact of the recession on the business resale market was severe. When the recession hit many previously profitable companies saw revenues tumble up to 35% or even more in some cases, making them unsellable in most cases. These businesses needed to show a recovery in revenue and profit at or approaching their former levels before buyers were willing to purchase them. 2010 was seen as the year of recovery for many businesses. “It was a classic V-shape” says Skrlac. “If you plotted annual revenues from 2007 to 2010 you could see a real decline in results starting in 2008 then a big drop in 2009. Most small businesses we've spoken to have not caught back up to their pre-recession volumes but many seem poised to do so, especially when we look at 2001 pending order volumes from their customers” remarked Skrlac.
Evidence is suggesting that the overall business resale market in the Greater Toronto Area and southern Ontario, Canada is becoming more liquid. “We are getting 3x the volume of business owners looking at selling a business as we did 12 months ago. Buyer enquiries are way up and on some desirable businesses were are even starting to see multiple offers come in from buyers” says Skrlac.
Steve Skrlac is a business brokerage professional in Ontario, Canada. Steve assists people to buy or sell a business in the Greater Toronto Area (GTA) and southern Ontario.
For more information contact:
Steve Skrlac, MBA, CFA
Coldwell Banker Pinnacle
Hamilton, Ontario, Canada
steve (at) businesses-buysell (dot) com
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Business brokerage professional serving the Greater Toronto Area (GTA) and southern Ontario, Canada. Assist with selling businesses valued from $100,000 to $5 million.