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Why (and How) Business Owners Are Selling in 2017

Selling your business could be the best thing you do this year.

 

As 2017 takes shape, business owners from all over the United States are reaching out to The Firm Business Brokerage for business valuations as they prepare to exit their companies in the next 6 months to a year.

Why now?

While 2017 may have gotten an uncertain start with the changing of the presidential guard, there are several strong indicators that it is will be one of the most favorable years for business owners looking to sell.

  • Capital gains tax changes: Higher income brackets could see increases both to their tax rate and their long-term capital gains tax rate, should President Trump’s tax plan be approved. Many owners are looking to sell before the proposed changes take place.
  • Strong financials: Several businesses in 2016 reported increased revenues and cash flow over the prior year as the economy continues to strengthen.
  • Fewer business regulations: State and federal regulations for businesses are easing or being eliminated, opening up increased opportunities for new owners.
  • Bull market conditions: The volatility index has hit a 55-year low and buyer confidence is high.
  • Low interest rates: The less it costs to finance a business sale, the more money both parties see at the time it exchanges hands. With interest rates predicted to rise in the coming years, now is a great time to maximize buying—and selling—power.

The current economy, coupled with the above market factors, have strengthened valuations in recent months, giving business owners a chance to show their past, trending, and future success on paper. All of these add up to 2017 being a notable time to transition a business.

Why The Firm?

The first thing high-volume business brokers will tell you is how many deals they closed in the last week, month, and year. They will tell you about their access to buyers on an international scale, their abilities to get multiple offers, and their success at closing the highest sale price. What these broker machines are missing is what has given The Firm Business Brokerage its strong foothold in the Midwest: our ability to find the right buyer at the right time for the right price.

We know better than most what it takes to close a deal successfully. In fact, we currently deliver the highest closing volume in the Midwest with a typical closing timeframe of four months, nearly halving the industry average. Our successful efficiency is a product of a focused and thoughtful alignment of buyers, sellers, values, and competitive listing prices with a dedication to thorough due diligence, underwriting, and polished targeting.

More than that, we make a point to know our audience on both sides of the table. 

  • We “get” buyers. Today’s market has more prospective buyers than ever, especially as younger generations explore new ways to define success and career. Many have the capital and the savvy to run their own companies, but not the time or stamina to risk a start-up; purchasing an established business allows them to capitalize on a company’s current success while also positioning it for greater profitability under their own steam.
  • We understand sellers. Current market conditions favor the seller, allowing them the added benefit of screening prospective buyers to ensure the company they’ve grown from the ground up will continue to flourish in the right hands. The Firm knows the success of the transaction has just as much to do with the number on the check as it does the confidence in the transition. Much of what we do balances the best of both.

From market factors to personal goals, there are many reasons why a business owner may choose to sell a business in 2017 and why they choose The Firm to help them do it. Our job is to help them capitalize on this year’s benefits so that they make the most of every year to come.

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The Firm makes no warranties or representation in consideration to the information provided above. All communication regarding this business must occur directly with The Firm Advisors, LLC. The Firm is not a real estate brokerage and does not sell real estate. The Firm solely advises on exit strategy.