That’s the asking price for an appliance store in Independence, Mo.. The current owner says he has plans to go back to school and he runs two other businesses. He’s simply too busy, he says. (No word on how much the recession has affected sales.) So for $1, you can start hawking washing machines and refrigerators. You take over the $3,300 monthly lease.
That’s what it takes to get a business sold these days. Indeed, if you were hoping to sell your business and retire this year, you may be out of luck. The market for the buying and selling of private companies has ground to a near halt.
According to business marketplace BizBuySell and this CNNMoney story, both the number of businesses sold and the prices paid by buyers dropped dramatically in the first quarter. Interested buyers have less cash and face tough borrowing standards.
The number of listings on BizBuySell’s marketplace are 8% lower than they were a year ago, a sign that some people may be trying to ride out the storm until a more favorable environment comes along, says BizBuySell general manager Mike Handelsman in the story. Potential sellers know that if they have depressed cash flow, they’re not going to get as much for the business as they would in times of higher sales.
For some, that may mean putting off retirement – or other plans - for another year or two. Unless you want to sell for $1.
Readers, have you thought about selling your business recently - or buying a business while prices are so low?
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