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THOUGHT FOR THE DAY

Optimism in the M&A Market is at an All-Time High!

Optimism in the M&A Market is at an All-Time High!

Feb 19 2019

Twenty-one percent of business advisors surveyed by the International Business Brokers Association (IBBA), M&A Source, and Pepperdine Private Capital Market Project, say 2018 was the best year they've ever seen for business sales.

Another 37 percent say it’s the best time in five years. Consistent with general market optimism advisors believe seller advantage is growing, with year-over- year seller-market sentiment increases in all market sectors. In the Main Street market, for businesses valued at less than $500,000, seller market sentiment is at the highest it’s been since 2013.

Capital is readily available from lenders, private equity firms, and family offices, and existing companies, have record cash sitting on the sidelines. Interest rates are still relatively low, the economy is going strong, and business confidence remains high. Well-run companies are doing well in the M&A market right now.

For many sellers, this is the time to take some chips off the table and head for the exit. Savvy business owners are taking advantage of the strong seller’s market, even though they aren’t ready to retire. The idea is to maximize value by selling now, diversify their net worth, and then buy or start another business where they see opportunity.

Capital is readily available from lenders, private equity firms, and family offices, and existing companies, have record cash sitting on the sidelines. Interest rates are still relatively low, the economy is going strong, and business confidence remains high. Well-run companies are doing well in the M&A market right now.

For many sellers, this is the time to take some chips off the table and head for the exit. Savvy business owners are taking advantage of the strong seller’s market, even though they aren’t ready to retire. The idea is to maximize value by selling now, diversify their net worth, and then buy or start another business where they see opportunity.

The current  environment means there may never be a better time to sell your business.

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