How important are industry trends when evaluating a business?

Even an excellent business operates within a larger industry. Buyers should consider whether the industry is growing, changing, becoming more competitive, or being affected by technology, consumer preferences, regulations, or economic conditions.

A well-managed business operating in a changing industry may still represent an excellent opportunity if the buyer understands both the challenges and the future potential.

Looking beyond today’s performance often helps buyers make better long-term decisions.