Yes it is appears to be exactly that. For a few reasons.
Firstly there's a lot of inventory, some that are successful and profitable businesses and others that are .. not.
Secondly with the increased interest rates and inflation, buyers are generally much more cautious to take on a new business (risk) and therefore are becoming selective and hesitant.
Here's an interesting article from the discussing headwinds in the commercial sector.
Lastly, and maybe the darkest, is that it's no secret that businesses are struggling to find staff, struggling with increased bills, struggling with a COVID debt load and the end of Government subsidies. It's a large part of the news cycle and has been for many months. Buyers have had it plastered all over their news and social media feeds since before the summer.
So what does that mean? Lowball offers.
If you're a seller, it's time for a .
Do you want to hold on as long as possible or do you want to sell as quickly as possible?
The more you ask, the longer it will take.
Buyers don't NEED to buy your money losing operation.
If they want to take on debt or risk, there's no shortage of options for them.
Would you borrow $300,000 to take over a high risk, low yield business? Or a 6 unit apartment building in Edmonton?
Not a difficult decision for most.
It's time to get realistic if you're wanting to move on.
