For the past two years, I have worked with Edible franchise owners across the nation as they have endured and thrived through the pandemic. So much has changed for Edible owners, and yet so much has remained the same. It is still hard work to keep up with everything that is changing and who wants to talk about hiring and retaining good employees, right?
So now what for Edible owners?
You have been running hard, you are tired, and there has never been a better time to sell!
We are in inflationary times
The economy is in transition and we are looking straight into inflation. As of now, the Consumer Price Index (CPI) is up 8.5% for the year. Energy prices are up 32%, and food prices are up 8.8%, increasing to levels we have not seen in years. The ripple effect is causing increases in interest rates, insurance rates and costs across all categories. The result is increasing cost pressures for everyone.
Many economists predict a decline in 2023 and possible sooner. If this happens, the impact will be negative with respect to selling your store and prices will start dropping.
Get your business valued and listed now!
There is a lot of pent-up capital waiting for the right business opportunity to invest in. Interest rates are on the rise, and you don’t want to miss out on maximizing your sale.
Nearly every day, I speak with store owners who are thinking about selling. Many current owners are asking themselves (sometimes daily), “When is the right time and when can I be done?”
Edible owners who have thought about selling face a great time for transitioning. If you are one of these owners, here are things you need to know as you manage your business in 2022.
Still a Seller’s market
First, if you are thinking about selling your store, it’s still a seller’s market.
As a business consultant and broker specializing in Edible franchise resales, I can tell you that we at Sunbelt have had a record number of closings – in just about every industry. I currently have 19 Edible stores listed for sale and 9 that are under accepted purchase agreements. There has never been a better time to consider what selling your store could mean to you.
Second, Business Brokers are encouraging business owners to consider selling now. Valuations and asking prices are still high, and who knows how long that will last.
Third, overall, Edible stores that I sold in the 1st half of 2022 were valued at higher multiples than at any other time in recent history.
Add to that the current affairs that interest rates and capital gains tax rates are increasing significantly, creating a potentially severe consequence for waiting to sell.
If you are an Edible franchise owner contemplating the sale of your business, there is no better time than right now to get the homework done. As a professional Edible franchise advisor, I encourage you to connect with a broker to help you think through your options.
TIM SCHINKE
CERTIFIED BUSINESS BROKER & INDUSTRY EXPERT
CELL: 612-840-3295
DIRECT NUMBER: 612-454-6224
EMAIL: tschinke@sunbeltmidwest.com
