Great Outlook for Buying or Selling a Business in 2007!

National Survey of IBBA members points to a good economy

For those looking to buy or sell a business this year, a new survey indicates that 2007 should provide some great opportunities.

The survey, administered by the International Business Brokers Association (IBBA), asked more than 1,900 members throughout the U.S. and 14 other countries about industry trends and their expectations for the economy. Fifty-three percent of the respondents indicated they expect the economy to improve this year.

"With this optimistic outlook, and the continuing trend of baby boomers looking to sell and retire, we see great opportunities for both buyers and sellers of businesses in 2007," said Ron Johnson, IBBA Chair. "The past few years have been active for business sales, and 87 percent of the survey respondents think business sales will increase in 2007."

While the type of business is important, a firm's track record is also critical. When buyers look at purchasing a business, they search out potential business opportunities that have a documented history of success. Business owners should start preparing a business for sale years in advance to add significant value. What are some of the most important things that a seller can do to make the business more attractive? The top three requirements cited by survey takers include:

-- Improving cash flow
-- Updating all documents and records
-- Determining the company's actual worth

The survey indicates that, when looking to purchase a business, a buyer should consider these three things -- they are primary indicators of a successful business:

-- Cash flow
-- Buying an established business with proven success
-- Employees and key staff

Individuals must be prepared and understand what it takes to make the process successful. Your local professional business brokerage firm that holds membership in the IBBA is a source for assistance and additional information.

The International Business Brokers Association is the largest international non-profit association operating exclusively for the benefit of people and firms engaged in the various aspects of business brokerage and mergers and acquisitions.

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SOURCE International Business Brokers Association