A recent article in the Wall Street Journal, “Businesses Put Up for Sale Smack into Harsh Reality,” demonstrates just how difficult the market is for small business owners who are looking to sell their businesses. The article hammers home the fact that the small business market is stagnating due to tight credit markets and the hesitancy of buyers and sellers who are unsure whether the markets will improve or decline.
The number of businesses being sold has decreased in the last two years, according to the article. One expert argues that one of the problems is that business owners’ asking prices are too high because they believe their businesses are worth what they were three years ago.
One owner cited in the article opted to liquidate his assets rather than wait for the market to improve or for another recession. As a result, he will only earn approximately a third of what he was asking.
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