As briefly mentioned in our last newsletter, we have noticed a significant amount of “cash” sitting on the sidelines – buyers, who are ready to move due to the dissatisfactory investment returns obtained in this market. After all, what does a treasury bill really yield these days?
We see this trend even further enhanced by the “jobless recovery”, in other words, many well-to-do buyers are looking to buy themselves a job PLUS wanting to make a high yield investment. Indeed, it can be a very gratifying experience to run your own business, as a matter of fact, business owners consistently experience the highest overall well-being (see our blog – September 17, 2009).
However, we do live in difficult times as a buyer has to navigate the treacherous waters of buying the right company, and it will require very qualified advisors to review various investment options. Whereas in the past, the interest/talents of a buyer, available funds or networth and geographic preference primarily represented the key decision criteria, now there is the added challenge of sorting out which company’s sales/ profits will increase once the recession eases. In other words, many companies have declining numbers, top and bottom line, and the buyer needs to differentiate a business’ (permanent) structural deficiency from a (temporary) recession driven decline. Not an easy task!
For that matter, we are pleased to announce one of our workshops to be held on October 20, 2009 in Red Bank, and we welcome you to reserve your seat(s) for a healthy breakfast discussion.