Is it Time to Sell my Business?
Many business owners today are asking themselves when is the right time to sell my business? Only you know when the timing is right.
It helps to understand the market when asking is it time to sell my business. The 2019 Q4 results of the Insight Report are in, and according to the report, small business transactions in the fourth quarter of 2019 continued to slip below last year, however, sales are still being reported at historically high levels. 2019 was a record-breaking year for Wright Business Advisors and I personally was blessed with supporting my sellers in nine transfers myself in 2019.
There were 9,746 transactions reported in 2019, and the report states that these closed sales were down 5.5% from 2018, which set the record for most transactions. 4th quarter 2019 transactions, however, bounced back to positive growth. According to BizBuySell’s Annual Confidence Index, business owner confidence dropped 6 points in 2019, largely due to political and economic uncertainty.
Abby Corbett, Managing Director and Senior Economist for CoStar Group mentions “by analyzing BizBuySell’s proprietary data, we continue to witness a bifurcated landscape where consumer confidence holds at historic highs while small business confidence has experienced a softening due to heightened uncertainty”.
The fear of recession continues to weigh the heaviest on small business owners’ minds, however, the minimum wage increases in January 2020 in 24 states is the second largest concern. The uncertainty from the presidential election is the third-largest concern, followed by tax regulation, healthcare costs and the duration of international tariffs and its impacts on business profits. Cyber threats are also a bit of a concern to some, where 21% of the respondents claim they have had Denial of Service (DoS) attacks.
No one has a crystal ball and only you and your gut instinct will tell you if/when the timing is right. The majority of privately held businesses are owned by Baby Boomers, and we are now in a business exit boom as these 55-73-year-old Boomer entrepreneurs are seeking liquidity and transitioning out of their businesses. This may be a good time to consider your exit strategy? Have you been asking yourself “should I sell my business?” Maybe the timing is right to at least consider it and plan your future exit?
Lastly, a company that is scalable with strong future growth potential and where your companies sales come from a predictable and recurring revenue stream will help you fetch a higher price for a nicer retirement. Check out our business value assessment to learn more about how you can fetch a higher price.
Contact me if I can be of service or answer any questions you may have
firstname.lastname@example.org or 720-436-1472.