price reduction

Whilst 2014 has seen an increase in buyer enquiry, which is encouraging, we are yet to see the increased activity translate into commercial sales. Despite record low interest rates it is obvious that it is going to be a very long slow road back to a more buoyant commercial market. Additionally we are becoming increasingly concerned that there is a growing pent up supply of businesses that have not yet come on the market because of owners concerns about the global financial crisis effect. In other words they are holding on for better times (particularly Baby Boomer-owned businesses) and   values could therefore soften in the near future as they are impacted by the looming oversupply of businesses coming on the market with Baby Boomers entering retirement. Furthermore bank lending guidelines have tightened considerably since the GFC in what the Banks describe as a return to more normal lending practices. In summary we are concerned that the multiple negative forces impacting on small business activity are going to continue into the foreseeable future resulting in a continuation of depressed market conditions and potential price reductions.

 

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