Businesses are selling and “now” may be a good time to consider selling. After all, owning one’s own business is still the great “American Dream.” However, several factors are pushing this demand. Following are some reasons why you should consider to sell now.
There is always a demand for good, profitable businesses, but now the demand is even greater. Mergers, layoffs, consolidations, too much work being placed on a shrinking work force – all contribute to the ever-growing pool of potential business buyers.
- The economic issues facing the country seem to be in a positive and upward trend. Inflation is still low and interest rates, while increasing, are still relatively low. Buyers can borrow against their house, for example, and at a very reasonable rate; the same is true for bank financing and guaranteed loans by the Small Business Administration (SBA), usually termed as “7a” loans. On the plus side for sellers, capital gains taxes are also low. Buyers can borrow more easily and pay less in interest, and sellers get a break on capital gains taxes.
- There is increasing evidence that many people who are currently employed are unhappy in their jobs. Benefits are declining and even disappearing, as is the time-honored retirement program. Many of these people are doing the work of two or three employees to make-up for company downsizing – all in the name of corporate profit. These people may begin to consider making their hard work pay off by owning their own business.
- Business brokers know from experience that buying and selling activity increases when the economy is on the move, and most reports indicate that it is.
Sellers, however, better think twice before trying to cash-in by merely placing their business on the market. One thing buyers always want to know is – if this is such a wonderful business, why is the owner selling? Business owners should not even think about selling if there is no valid reason and all they want is to see how much they can get for their business. If there isn’t a factor operating such as health, retirement, personal issues or genuine “burn-out,” the owner should wait until there is a legitimate reason to sell. In too many cases, terms are agreed upon, but because the seller is not truly ready for this step, he or she pulls out of the deal. However, if the seller is ready to sell and, if that time is now –all the better. For a confidential evaluation of your situation, call a professional business broker today.