The start of January brings with it a revived vigor for following your dreams and making big changes. One of the biggest changes people resolve to make is a career change. What better way to make the ultimate career change than to become a business owner and buy a business.
Buying a business is a great way to take control of your financial future, and never have to worry about your job security again. And business ownership comes in many shapes & sizes and offers a more flexible lifestyle and a near unlimited opportunity to build your personal wealth. 2019 is going to be a pivotal year for the business acquisition market in a number of ways, which we’ve highlighted below, to help our clients make confident and informed decisions about their future as a business owner.
The small business M&A market data still suggests that now is a great time to buy a business, as the market is strong. Business transactions continue to favor both buyers and sellers with the availability of great financing options for buyers with low interest rates, and stable, well established businesses for sale at strong valuations. However as we begin 2019 and move into 2020, there is one significant trend we’re watching that will affect business acquisitions going forward and that is interest rates.
Interest rates on financing have been low for a few years, allowing buyers to stretch their purchasing dollars. But this will not always be the case. As interest rates slowly tick up in the coming years it is likely business acquisition transactions will need to be restructured to follow suit. The SBA program for main street and lower, middle market businesses has been crucial in getting our high level of deal volume completed in the last five years. So if the cost of lending goes up, we'll have to adjust the value of businesses, buyers may need to bring more cash to the table, and sellers will have to assume more carry.
If 2019 is the year you would like to buy a business, we invite you to schedule a free consultation with a business broker today or visit our website for more information.
Rachael Holstein has been the Marketing Manager for Transworld - Rocky Mountain since 2016. Her work experience has been largely focused on business development and marketing in business brokerage, finance, architecture, property management, and information technology. A long time resident of Cleveland, Ohio, she attained her undergrad from John Carroll University and her Master’s Degree from Cleveland State University. In 2013, she relocated to Denver with her husband, Joe, and her furry companions to explore the mile high lifestyle!