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During 2021 the acquisition of small business in the United States increased
The purchase of small companies as part of a strategy to enter the North American market has been gaining steam. An increasing number of investors are acquiring companies already incorporated within the US.
The figures speak for themselves, and it is that during 2021, these sales increased by up to 14% according to data from BizBuySell. Although more than an increase, we could call it a recovery, since during the height of the pandemic in 2020 sales fell dramatically.
Today we are going to analyze a little more the factors that surround this recovery. With these data you will be able to make a much safer investment within the United States.
A recovery of 14%
According to the figures provided by BizBuySell, during 2021 there were 8,657 purchase-sale transactions of companies in the United States. A figure higher than the 6,012 that were made during 2020, which represents significant growth. However, these were lower than the 9,833 that were made in 2019.
These figures tell us that the market is entering a growth stage, so it is a good idea to invest at this time. In fact, during 2021, the amount of purchases was increasing little by little every quarter.
So, we have that, unless something happens to change this trend, during this 2022 we could expect the number of transactions to be similar or higher than 2019.
In fact, the report also talks about an increase in the purchase price and this is motivated by the fact that there was a great demand. People and companies competed to see who would make the purchase. This tells us that confidence in the market has been restored.
Demand for solid businesses remains strong
It is no secret to anyone that COVID-19 affected many companies, regardless of their size.
However, with the data provided by BizBuySell it can be seen that the demand has been maintained. It has had slow growth, but it has not regressed, which is a very good sign. Even during 2020 in the midst of a pandemic, this section continued to grow.
When people look for a company to invest in the United States, it is clear that the intention is to look for a solid company. This does not mean that those businesses that are in a bad situation are not taken into account. But, it is not the preference, since 60% of the buyers assured that this is a determining factor.
What was the average cost for the purchase of companies?
As we had anticipated, this 2021 during the first periods, the average cost of US companies increased. According to data provided by BizBuySell, prices during the first quarter reached their highest point of $325,000.
This increase represented a 30% growth compared to the closing price of 2020.
However, at the end of 2021, this price fell slightly to settle at $324,500. In this aspect we have that the price remained relatively stable. The projections are that the average price may fall during the period of 2022.
There is much greater demand than supply
One of the main problems you may run into when trying to buy an American company is that demand has dropped. There are many companies that have preferred to wait for a recovery rather than sell.
However, the US government has advanced some laws to encourage business development. In this case, we have that very probably, if the same growth continues, the supply of companies may increase.
The pandemic is not over yet and the recent Omicron variant is affecting many companies. Some to a greater or lesser extent, which may also contribute to the owners deciding to sell.
This means that the average prices of the companies can go down. During 2021 it increased due to shortages, but now the opposite could happen. In this case, it would be an excellent time to buy.
In fact, according to BizBuySell, about 43% of small business owners have considered selling. Two years of the pandemic have caused many to feel exhausted, discouraged and some have seen their capital diminish. Which would also contribute to the supply of companies for sale during 2022 being able to improve.
2022 is going to be a good year to invest in buying companies in the US.
If you have been considering starting to invest in the United States, this 2022 may be the right time to do so. When the offer increases, the prices will go down, which will help you get a company for less than what it costs now.
So the key to getting the most out of a business purchase is to wait. It would be difficult to say when the increase in supply will occur, so you have to be vigilant.
Keep in mind that just like you, there will be many more investors waiting for the right moment to make their purchase.
What are the benefits of having the help of professionals?
It is true that many investors do not have enough time to dedicate themselves to hunting offers in the market. That is why a good option is to hire a specialized company that can help you and provide you with advice on this subject.
But they are not only going to provide advice, since they can recommend investments and even help you find the perfect company. These companies are responsible for monitoring the market in search of offers for investors.
So, if you are looking for a company, but you do not have the time to be evaluating the market, these companies are the best option. They are probably your gateway to investments in the United States. So you can leave your future investment in the hands of a good company for buying and selling companies in the USA.
