It’s Time To Buy A Business

We all know that timing is a significant part of winning. Playing the right card at the right time, being in the right place at the right time, being able to take advantage of an opportunity because you were well-positioned is key to success. This we all know to be true. The question and challenge is to be able to identify when the right time may be.

Many say now is the right time, and I would go so far as to say that any time you can buy a bargain is the right time. I also think it is not necessary to buy at the absolute bottom price, extracting every ounce of benefit possible. It’s OK if it gets cheaper and you bought a little above the bottom as long as you get a great deal.

So, what am I referring to?

I’m not talking about the stock market, although this may be the right time to buy there as well – I cannot say nor hazard a guess as to whether or not the market has reached bottom or has another thousand points to go. It is clear, however, that even if there is another thousand points to go, buying now is not a bad idea as the level of decline is so significant that good companies will eventually climb back out to previous values and thus purchasing now is still a great deal. I think the point is it is not necessary to get the lowest possible price to experience a terrific opportunity, near bottom is good enough. Many great companies are trading very low although they are still great companies. For the moment, it seems clear that fear is driving the market so value is out the window and great deals can be had on solid companies that are trading lower than they should be because of the hostile environment we are experiencing.

However, this entry is not about buying stock at a bargain price, it is about buying entire businesses at a bargain price. Businesses are more predictable than the stock market and what a great opportunity to buy up a competitor or an altogether different business than you are already involved in to diversify your exposure and bring that business back to life.

Everything has a cycle. A good business suffering from temporary decline because of usual market conditions is still a good business only now available at a bargain price.

Many good business owners are going to have to close up shop, shut the doors and liquidate assets because they can not withstand the negative cash drain. The opportunity for turnaround is clear and the likelihood for emergence again is also clear but getting from here to there may be too difficult for current ownership.

Forget the stock market unless you are knowledgeable about it. Look for a good business and buy its assets…cheaply. This may be the opportunity of a lifetime.