Supply and demand creates either a buyer's or a seller’s market in business sales. For a few years now, while the economy has been super strong, it has been more of a balanced buyer’s market. The world’s COVID-19 situation has shockingly turned the business sales industry into a seller’s market. For business owners who are interested in selling, right now is absolutely the ideal time to list, and here’s why:
We Have Record-Breaking Numbers of Buyer Inquiries
From February to today, we have seen a 50% overall increase in the number of buyer inquiries we’ve received. That number is just phenomenal! So far, June has been mind-blowing in terms of the number of buyer inquiries we’ve had already. We are still more than a week away from closing out the month, and just last weekend alone, we got as many buyer inquiries on our listings on Saturday and Sunday as we would normally get over the course of several weeks. The quantity of buyer inquiries has been steadily increasing month on month in 2020, with a rise of 5.8% from February to March, a surge of 22% from March to April, an increase of 10.4% from April to May, and another surge of 23% from May to the third week of June.
Not only are we seeing a “buyer tsunami” of interest, but the buyers that are coming through are a higher quality of buyer: buyers who are more serious and not “tire-kickers.” These serious buyers are asking the right questions, able to prove that they can financially make these purchases, and they are making offers on businesses. In many cases over the past couple weeks, we’ve even had multiple offers on certain listings, which usually doesn’t happen in business sales. With all of this buyer demand for businesses, we are struggling to keep up with having enough supply.
We Need More Listings To Sell
Many of Green & Co.’s listings are literally flying off the shelf, and we are left with the situation of having much more buyer interest than there are listings available on the market. To put it simply, we really need more listings to sell.
We know a lot of business owners who are thinking about selling but seem to have the mentality that it might be best to wait to see how the dust settles after we recover from all of this COVID-19 uncertainty. The truth is, COVID-19 is likely to be with us for a while, and we are challenged with how we can best “work around it” and find our “new normal.”
Despite our struggles with the state of the world, the business sales market has not slowed down, and in fact, it has gone full speed ahead. The market is HOT and the buyer interest is there, so we need to get more inventory to satisfy the buyer demand. For business owners who are thinking of selling, the time is right to strike while the iron is hot and get your business in front of the record number of buyers out there currently shopping. Having your business listing in front of as many buyers as possible is a no-brainer, but what is making these buyers actually click on our listings?
How We Generate So Much Interest In Our Listings
The bottom line is that only 25% of businesses on the market will sell. So the question is, how do we get our business listings to be in that 25%? The proof is in the pudding for us, and we sell 82% of the businesses that we list. How do we do that? It’s actually pretty simple. We first work diligently on the valuation of the business and come to the most probable selling price, supported by data from comparable sold businesses. That is the first key to getting your business sold: get the asking price right from the very beginning. Then we get our marketing specialists to put out the very best quality marketing for the listing, and we really work the buyer interest that we have generated from that marketing. That’s our secret…make sure the asking price matches the business's market value, create superior marketing campaigns, and work hard to get the right buyer interested. Sellers who understand these elements and who trust our expertise to get their business sold will hopefully be celebrating the sale of their business soon.