Is 2017 The Year to Sell?

If one can go by election promises, the new pro-business administration – supported by a House and Senate majority – should usher in a climate of less regulation, lower taxes and modest inflation. Despite all the uncertainty in the US Economy, modest earnings, and a slowdown of the Global Economy, 2017 should see an upswing of business growth and M&A activity – from the slowdown of M&A activities in 2016.

Primary drivers should be businesses expanding by acquisition, rather than internal investment. Inexpensive funding and a slow-growth economy discourage organic growth and promote M&A activity to grow a business. What does that mean to the business owner who is looking to move on?

Now might be the best time to sell, as interest rates are still low for buyers and once the US Economy gains steam, companies will turn back to internal investments to fund productivity, leaving fewer opportunities for owners to sell a business.

Additionally, the confidence level of buyers is at an all-time high due to the change in guard in Washington, as vividly demonstrated by a surging stock market. Most importantly, with upcoming tax adjustments, a business seller will obtainer higher net receipts.

Now might be the best time to sell, as interest rates are still low for buyers and once the US Economy

gains steam, companies will turn back to internal investments to fund productivity,

If a business owner is looking to transition mid-term into retirement or to change investment strategies, now is the time to talk to an experienced M&A advisor to investigate various options.

As an initial step, many professional M&A advisors and business brokerage firms offer business valuations to determine the Fair Market Value of a business. Such determination can be put into place at relatively little expense, and it provides an excellent step for a first review, including an assessment by a tax advisor as to the net receipts of a transaction.

If the business owner’s decision is to move forward, then the M&A Advisors should help to prepare the business for sale including the decision on the right deal structure, the proper marketing approach and a plan to maintain full confidentiality.