World Class Mergers & Acquisitions  |  For Companies $5 Million to $100 Million in Revenue

When Is The Right Time To Sell Your Business – Part 3

The Current Window of Opportunity 

Some experts have observed that several trends have converged to create a uniquely attractive window of opportunity for those business owners who would like to sell their business.

First, they note that about 250,000 businesses are transferred through sale, inheritance, etc. each year, and this annual “demand” is expected to remain fairly constant for the foreseeable future.

Second, due to the aging of the Baby Boomer generation, the number of businesses available for sale is expected to grow to 500,000 per year beginning in about 2010.  As supply begins to exceed demand, selling prices will begin to fall.

Third, tax rates on capital gains are currently at record low levels, but most observers believe these rates will likely go up — perhaps dramatically — as early as mid-2009, depending upon which party comes into power in January.

Lastly, though much has been written about the current “credit crunch” and resulting economic slowdown, the truth is that: (1) interest rates are still lower than they have been in 40 years, and (2) banks still have plenty of money available to finance the sale of fairly priced businesses.

The combination of low interest rates, low tax rates, and balanced supply and demand is creating a more favorable climate for the sale of a business today than may exist for another 10-15 years, according to many observers.

If you know of a business owner who’s thinking of selling or buying a business and who might benefit from a complimentary consultation with us, have them contact me, or any of the M&A professionals at www.bradwaygroup.com.

By: Mike Ertel, Transworld M&A Advisors