Timing is everything, and 2019 is the prime time to sell a business for maximum value. The conditions are extremely favorable right now for several reasons, and waiting could mean that you miss out an ideal opportunity.
10 Reasons to Sell Now
1. A global recession is expected to be looming in the next year or two, and you do not want to try to sell a business in a recession. There will be less demand, less funding, and far more buyer apprehension.
2. Amid the current positive economic climate, banks are in a generous mood. If you sell now, you can take advantage of increased funding and available capital.
3. There is an increased demand for buying businesses at this time. We are seeing buyers and sellers both accelerating their M&A strategies. The experts are confident, the buyers are confident, all resulting in why you should be confident to sell.
4. A majority of buyers currently indicate that they are likely to consider international prospects.In 2018, a record $1.6 trillion in deals were cross-border M&A. Access to new markets opens up more possibilities for the sale of your business.
5. Right now, companies are seeing higher valuations and sale prices are at an all-time high. Technology companies in particular are seeing record-high valuations, with continually increasing interest from private equity investors.
6. Ongoing industry deregulation and tax cuts in countries such as the United States and China make economies more likely to thrive, and healthy economies are good news for small businesses.
7. At this time, buyers outnumber sellers. It is a seller’s market, and if you choose not to make a move in 2019, you could end up waiting anywhere from five to ten years for another opportunity that is this advantageous.
8. Companies that have management teams already in place and reoccurring revenue are seeing higher offers from buyers. If your business is in this position, you will want to put it on the market while this tendency persists.
9. Interest rates are expected to rise in coming years, but they are expected to remain steady through 2019, resulting in a favorable environment for M&A activity.
10. As the baby boomer generation enters the era of retirement, they are likely to inundate the market with the number of small businesses for sale. If you put your company on the market now, you will be getting ahead of this unprecedented influx of competition.
Ready to Sell?
It can take several months to sell a business. If you are ready to sell and reap the rewards that 2019 has to offer, the time to act is now. Give us a call at Benchmark International so that you can benefit from having a globally connected M&A advisor that puts your interests first.
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