There’s Not Much Interest in Business Offers Over 1 Mln Euro

Nikola Stoyanov is the managing partner and co-founder of the real estate agency BULGARIAN PROPERTIES. He is also the managing director of the newest addition to the group – the company for business consulting, mergers and acquisitions BusinessForSale.BG, which was founded in 2009.

Mr. Stoyanov, how does the number of business offers for sale change during a crisis and what has the trend been in the last few months?
- Since the founding of BusinessForSale.BG we cannot report drastic changes in this segment. There is dynamics in connection with the increased number of new businesses put up for sale. In the last few months we are witnessing an increased number of enquiries from potential buyers. There is definitely interest in the companies we offer for sale but for now the interests of buyers and sellers when it comes to price do not meet.

Is there any change in the size and the prices of the companies offered for sale?
- We have focused our attention on the sale of small and middle-size businesses and enterprises as there is interest mainly in offers with asking prices up to 500,000 Euro. The enquiries about businesses priced over 1 million Euro are sporadic.

Which are the spheres in which buyers are most interested?
- They are interested in well working and profitable businesses which can prove a stable income and a return on the investment. There are serious enquiries and even concluded deals with such offers. There is even bigger demand for such companies because in these tough times all investors look for secure investments in profitable activities, which are quite rare at the moment. Regretfully, most companies offered for sale in Bulgaria are in a bad condition, in debt and with decreased turnover. Apart from injecting fresh capital these companies also need serious restructuring, which is what most often makes investors give up.

How long does it take after an offer is published for a deal to be concluded?
- Most offers remain on the market too long. Many companies stay on the market for more than a year and without a clear idea whether there will be a deal soon. Everyone understands that at present no one can expect a fast deal. That is why we advise all sellers in advance not to put the business for sale now if they can afford it as the conditions on the expensive asset and business market is not favorable. Of course, we have a lot of companies which are offered at the market price and according to their owners – at a just price.

However, potential buyers do not feel like risking and acquiring a company at the moment due to the unclear future of almost all business initiatives in the country. Deals are concluded only with sensibly priced businesses which have development potential. Of course, there always are exceptions and these are businesses which can prove that by investing in them the buyer will get over 10-15% annual return on the investment.

In which sphere are deals most often concluded?
- Above all this is the business property sphere.

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