Business Sales Trends in St. Louis
Entrepreneurs in the St. Louis area of Missouri may find that now is a great time to consider buying or selling an established business. Several factors ensure buyers have a steady supply to choose from on the market, and sellers can cater to a large pool of entrepreneurs looking to buy. Whether you’re a business owner looking for a change or you’re interested in purchasing an established company, here are the trends that will drive both sides of the market in St. Louis in 2018.
Seller Motivating Trends
The recent recession hit many industries hard and business sales were no exception. Business owners are finally showing signs of recovering with a renewed interest in exploring their options to sell their companies. Owners who postponed retirement plans to wait out their company’s loss in value, are now finding their businesses can command a much more reasonable asking price. Many companies that have struggled through the economic downturn will be placed on the market due to financial necessity or burnout from the efforts needed to keep the business afloat.
St. Louis boasts a strong economy with steady projected growth. This offers the anticipation of increased profits, giving sellers greater bargaining power to drive up the price of their businesses. A thriving metropolis, booming with new development, ensures a variety of companies on the market, as old businesses make way for new, and industries shift and adapt to the changes. The continued advancement of technological conveniences will also find some companies unable to compete with industry rivals that have a better understanding of how best to incorporate those improvements. Each of these things lead to an increase in businesses for sale.
Buyer Motivating Trends
The anticipation of the Baby Boomer generation reaching retirement age has attracted many entrepreneurs with cash in hand, ready to take over the profitable businesses left behind. Companies are certainly available to buy, but the number of quality businesses is lower than originally anticipated. This leads to companies with stable profit projections being in high demand with buyers looking for a steady investment. Struggling companies have an opportunity to shine as well, provided they have a solid foundation, as risk-taking buyers comb the market for diamonds in the rough.
The rapid growth of the St. Louis metropolitan area is also a motivator for buyers looking to capitalize on anticipating development. Some investors will look to companies being sold on the outskirts of current hot spots, attempting to predict the next trendy location. This tendency provides a possible advantage to less stable businesses as these buyers are more willing to take risks. Economic growth also attracts conservative investors who will be watching the area for established companies being sold due to burnout or retirement rather than necessity. In either scenario, the expansion and development of the city leads to increased buyer attention.
St. Louis is a prime location for current business owners and future investors to come together and profit from one another. Business sales trends include an increase in companies on the market and in buyer activity. Sellers in the area are motivated by improved post-recession values, rapid change and standard burnout. Buyers are feeling the push from rapid growth and a Baby Boomer retirement surge that didn’t quite meet expectations. Sellers can ask for prices that accurately reflect the value of their businesses and buyers can purchase these companies with confidence that future growth will increase the return on their investment.
If you own a business in the area, now is a good time to consider whether it’s time to sell. If you’re an investor looking to make a purchase, this year is going to see an increase in businesses for sale, on top of those already on the market. On either side of the fence, 2018 is shaping up to be a great year for business sales in St. Louis.
Contact LINK St. Louis at (314) 487-0005 or email infostl@linkbusiness.com to speak with an experienced Business Broker to discuss your selling or buyer options.