Business owners are an independent lot. But they are surprisingly predictable when it comes to selling their companies. When revenues are rising and money is cheap; they delay. This can have serious consequences when the market turns.
Every business owner will exit their business someday. The decision to sell is often a combination of personal and financial considerations. The personal reasons can vary widely but here are some financial reasons why business owners should sell right now:

• Sale prices in most major industries are up double digits.
• Capital to finance deals is available and interest rates are cheap. For Main Street deals (under $5 million revenue) SBA lenders have not been this aggressive since before the recession. For M&A size deals ($5 – $50 million revenue+ deals) capital is also available from both strategic buyers and private equity groups.
• Strategic buyers, large and small, are making moves to grow through acquisition. Your competitor who is the same size as you now could be acquired instead of you, making you the small player in the market.
• If your revenues and/or earnings are up; sell now from a position of strength. One down year can cause a three year delay in a sale as buyers like to see 3 years of growth or at the very least 3 years of stability.
• Buyer demand is off the charts, which drives multiple offers and higher sale prices. Buyer inquiries at Sunbelt are up 80% over last year as buyer confidence has been boosted by the economy and affordable deal financing.
• Right now it’s a seller’s market as buyers outnumber sellers. This will change as more and more baby boomers, who own 66% of small and midsize companies, finally make the decision to sell. This “Age Tsunami” is expected to invert demand, creating a surplus of businesses for sale and changing the market to a buyer’s market.

At Sunbelt Business Brokers and M&A Advisors closings are up 17% over last year and average sale prices are up close to 50% over last year, driven by higher multiples, better financing and companies with strong earnings. There is no perfect time to sell but the conditions are very favorable right now.
If you want more information on whether now is a good time to sell contact Sunbelt to schedule a complimentary consultation and see what your business might be worth in today’s market.