Online Pawn Shop Becomes Short-Term Option
On the same note, a lack of financing options continues to be the biggest reason in preventing small-firm M&A, according to a report last week from BizBuySell, a marketplace that lists and tracks businesses for sale.
Approximately three-quarters of the brokers surveyed by BizBuySell said financing availability for business buyers has not improved this year. And 47% said a lack of available financing is the primary factor preventing transactions from closing these days.
And sentiment seems to be getting worse.
Mike Handelsman, BizBuySell's group general manager, said in a statement that while the company expected financing troubles to be a continued issue in closing acquisitions, "it's our feeling that the recent economic environment caused the surveyed brokers to respond more negatively than they might have just a few weeks prior."Survey respondents had a fairly negative outlook on the availability of funding, with 49% saying that the limited funding availability will remain as tough through the rest of the year. Another 42% say it will actually worsen through the end of the year, given the recent economic and stock market turmoil, according to BizBuySell. The National Federation for Independent Business' monthly index on small-business optimism dropped for the fifth consecutive month in July, by 0.9 points, to 89.9 (below the average reading of 90.2 for the last two-year recovery period), it said earlier this month. "Given the current political climate, the protracted debate over how to handle the nation's debt and spending and [the S&P] debt downgrade, expectations for growth are low and uncertainty is great," federation Chief Economist Bill Dunkelberg said in an Aug. 9 statement. "At the two year anniversary of the expansion, the Index is only 3.4 points higher than it was in July 2009." --Written by Laurie Kulikowski in New York. To follow Laurie Kulikowski on Twitter, go to: http://twitter.com/#!/LKulikowski To submit a news tip, send an email to: email@example.com.
Follow TheStreet.com on Twitter and become a fan on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV