How's the economy affecting business opportunities?

This is a frequent question I receive from friends. Honestly, our team has been very busy this season. Tucson generally slows down over the summer - but we've had steady inquiries on businesses we have listed for sale anonymously or requests to help find a business.

My thought is that there is so much uncertainty in corporate world right now people are checking out their options. When I meet with someone who's interested in buying a business, they don't always know what they are looking for. We use a Buyer Profile worksheet to help them narrow it down. Of course, the amount of money that they have to invest is a major factor also.

Business owners have also been calling frequently this summer. A majority of the sellers we work with are "baby boomer" age. Most have not planned an exit strategy from their business. They are also considering their options. I'd say about half of the businesses I've met with recently have been affected by the economy. Retail stores with declining revenue, contracting firms whose industry is in shambles due to the housing market, etc. However, there are many industries that are seeing flat revenue growth and will withstand this downward trend in our economy.

Business Brokering is an interesting industry. Most have never heard of it. Those that have don't always understand that we are licensed real estate agents and that most of us have previous business ownership experience. While there are 6000+ residential agents (or were over a year ago), there are only about 30 legitimate business brokers in the Southern Arizona region. (I mention legitimacy because we sometimes run across the residential or commercial agent dabbling in this area) We are a small niche in the real estate world. Though we have real estate licenses, about half of what we do has nothing to do with true real estate. We spend our time reviewing financial statements, talking about management structure and planning for the transition to a new owner. I see our industry booming over the next decade with the retirement and second careers of the baby boomer generation!