Reports for small business sales in 2015 hit the internet this week. According to BuyBizSell.com's Insight Report, "While the number of businesses that changed hands decreased slightly [in 2015], key financial indicators reached all-time highs, indicating a healthy, more balanced market."
Does that mean that 2016 is going to improve even more? Is 2016 the year to sell your business? We have some key points for you to consider if selling your business is on your mind:
- The predicted Seller Tsunami will begin sometime between 2017 and 2020 according to experts. That combined with a strong seller's market for good businesses may just make 2016 the ideal year to sell.
- 2015 ended just about equal to 2014, in terms of the number of businesses sold and the value they sold for. However, the past two years are still the highest volume to date of business sales since the recession.
- As the recession is further and further behind us, business performance continues to gain strength which opens up more financing options for buyers, therefore widening the potential pool of individuals to buy your business.
- In 2014, 59% of professional advisers indicated the market as a 'buyers' market, whereas in 2015 that number dropped to 51%.
All these indications may point to 2016 as the year to sell. If you have reached a point of burnout with your business and are thinking about pursuing other?opportunities, this year is shaping up to be the year for you to really consider your options. If you preparing for retirement this may be the year to exit the job market altogether and settle into the life of relaxation.
We do recommend that you have a conversation with your business advisor as soon as possible. Most business sales take 6 - 12 months to complete; it does not happen overnight. The first step toward selling your business is a complimentary consultation with one of our brokers to discuss your business sale goals and get an idea of the value of your company.