Small Business Financing and Franchise Financing Blog

A Great Time to Buy a Business or Franchise

Wednesday, June 3

Buying a business is 17% cheaper than just one year prior according to an article published yesterday on CNNMoney.com called, It's a lousy time to sell your business. This article suggested that the volume of business transactions fell 36% from Q1 2008 to the same quarter in 2009. It also reported that median price point of transactions through BizBuySell was $165,000.

Sadly this article focused on the fact that you may not want to sell right now but BizBuySell reported that they listed more than 38,000 business last year meaning there is still tremendous inventory available for purchase. With so many willing sellers and prices depressed by 17%, could it be a great time to invest in a business? We believe there are many businesses for sale today that have significant upside!

Guidant's flagship business investment vehicle, the Guidant 401(k), allows investors to invest in a business or franchise without taking a taxable distribution or incurring penalties. Our average client has $180,000 in retirement funds. This means they have enough to buy the median price reported in this article in cash - not encumbering the purchase with any debt. You can also use small business financing methods like unsecured loans, equipment leasing and/or an SBA loan.
If you need more information...you know who to call.