If you are a business owner who has survived the Great Recession, you may be asking yourself the question: Is now the right time to sell my business?
As a business owner, of course, your own personal situation will influence this decision. Do you have a successor in the family to take over the business? If not, are you ready to retire or have an interest in doing something else?
Then there are questions about the state of the business itself to ponder. Is this business growing and look attractive to an acquirer? Is the business cash flowing optimally to maximize your sales price?
These personal and business considerations are unique to you and your business. Putting these questions aside for a moment – let’s assume you want to retire, the business is growing and producing strong cash flow – is the business climate right to explore a sale? The answer is a resounding YES!
Here’s why we believe the market has never been more ideal for what we expect to be a boom in merger-and-acquisition activity over the next several years:
- Deal Hungry Companies: There is significant pent-up demand for acquisitions amongst larger companies who have sat on the sidelines during a prolonged period of economic uncertainty. These companies have aggressively paid down debt and accumulated large cash reserves. Many of these companies are now seeking and are perfectly positioned to deploy capital for the right deal.
- Rock Bottom Interest Rates: Interest rates for business acquisitions are at all-time historical lows, making it easier than ever to finance a business transaction.
- Slowing Organic Growth: With some exceptions, strong organic growth through a company’s core product is getting harder to achieve, making growth through acquisition more compelling than ever.
- Window of Opportunity: The aforementioned reasons for increased M&A activity will not last forever. The days of cheap money are numbered. Moreover, some of the nation’s most respected economists are forecasting another economic downturn as early as 2015!
We specialize in positioning, marketing, and selling privately held companies just like yours to strategic buyers and private equity groups. Our firm is unequaled at creating a competitive bidding process to maximize the value from the sale of your company. Our track record is substantial, and we stand ready to assist you with integrity, competence, and confidentiality. If you are ready, call us to discuss how we can help you capitalize on the opportunity of a lifetime! The time is right, and we are ready. Are you?
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