In the current economic downturn, many businesses are considering their future. According to business analyst Harry Stevens, despite hostile market conditions, it’s a sellers’ market right now.
Stevens suggests that this is the result of a number key economic factors; the re-emergence of trade buyers, the availability of debt and the shortage of good opportunities. But how do these broader changes, impact the SME sector?
The Buyer’s Cycle
In the context of global consolidation, the perception is that much of the trading activity taking place involves larger corporation deals. However, Stevens suggests that such activity will eventually filter down to the SME sector and the market will experience a period of many mid-market deals. However, as we have seen in the last year, economic trends can turn. It would only take a couple of high profile mistakes and the confidence of the private equity market could be severely dented
Sell, Sell, Sell!
Obviously not all sectors are experiencing such interest from buyers. The most unpopular sectors are property, retail and recruitment while sectors such as technology, marketing communications and business with public sector contracts are increasingly in demand.