It continues to be a seller’s market for quality businesses with good accounting records, particularly those with an owner benefit of over $250,000 a year.
At some point, the approximately 77 million baby boomers, some of whom own businesses, will decide it is time to sell. For now, they continue to hold on. Presumably, they aren’t feeling their age yet, the business is still fun, and there are limited options for investing in safe havens, with such low prevailing interest rates.
At some point, though, interest rates will increase – that is a good bet. CNBC says this wealth transfer from baby boomers will be $30 trillion (yes, trillion). The question is when will this process of the baby boomers selling their businesses really kick in?
As interest rates increase, it is a two-sided sword. On the one hand, higher rates will make it harder to sell your business for a number of reasons. On the other hand, you can earn more money from the proceeds of the sale of your business.
Now may be the time to consider pulling the equity out of your company while interest rates are the most favorable. There will be plenty of time to find other investments that are safe and provide reasonable returns. As with so many things in life, timing is everything.
It is always smart to sell while at the top of your game. This is the time to consider selling before interest rates start to go up, sales start to go down, and boomers decide they have had enough and decide to sell.
As a seller or a buyer, if you would like a confidential conversation about how to prepare, please contact me on my cell, 954-579-4687, or by e-mail at firstname.lastname@example.org. My LinkedIn profile is at: http://www.linkedin.com/in/dolansales.