In light of Donald Trump winning the election, here are some critical insights for small businesses, with a focus on why selling your business now might be more advantageous than waiting.
Why Consider Selling Now?
Current Economic Optimism
- The stock market immediately reacted positively to Trump’s election, including some record highs.
- This optimism could translate to higher valuations for businesses looking to sell in the short term.
Policy Uncertainty
- Trump’s 2017 tax cuts will end very soon. Take advantage now.
- We know that the proposed tax cuts sound promising, however implementation timelines are uncertain.
Trade Policy Concerns
- Proposed tariffs (10-20% on all imports, 60-100% on Chinese imports) could significantly impact supply chains and costs.
- Selling before these policies take effect could help you avoid potential negative impacts on your business value.
Interest Rates
- Interest rates are expected to decrease again.
- Buyer sentiment is only rising, meaning profitable companies are wanted, and buyers will be willing to pay more.
Waiting Can Cost You Six Figures +
The past few years have been extremely hard on small business owners. Those that want to sell often can’t sell for enough. And those that wait until the last minute, often don’t sell for what they need to retire.
If we had one piece of advice for you – stop procrastinating, and actually understand what your business exit looks like. Being educated on the process and market will only put more money in your pockets.
