I finally got around to reading a Puget Sound Business Journal column from a couple weeks ago that was titled: Small business in ‘maintenance mode’ till election.
I’ve been saying this for a couple weeks now when it comes to searching for businesses to buy. It isn’t that plans will greatly change, it’s just been an excuse to hunker down based on the fear of the unknown. This happens every four years and once the election is decided people will get back to their regular routine.
I would expect a bounce in activity (buyers meeting sellers) no matter who wins. If Romney is elected many owners will figure there’s a greater chance that taxes won’t go up or won’t go up a lot and will make the move to sell. If Obama is reelected many will not be happy and say it’s time to get out.
Here’s what’s also interesting in the column.
- Two-thirds of owners expect to do well over the next two years.
- 50% say they are doing well (now).
- 40% say they are doing okay.
- Only 10% say there are not doing well.
As reported in the WSJ on October 25, many owners say access to capital is an issue and in the Business Journal article, 60% believe they will need capital in the next three years to sustain and grow their business. A lot of capital is accessed these days via bank loans guaranteed by the SBA, especially acquisition loans.
It seems that attitudes are a positive in general based on this article and other sources.
