All signs are pointing towards yes! As the reports containing 2016's numbers are becoming public it is obvious the business sales market is in a stable place and trending upward. Our first indicator up for discussion is the U.S. market's average sale-to-asking price ratio, which is at 92%. What this means is that the market has reached a place of balance, where the fair market value of a business for sellers and buyers is converging. This is great news because it shows more sellers are content with the price at which their business is sold, but so are buyers.
Now you might ask, "Do these 2016 numbers mean the market will continue to improve (i.e. Is 2017 the year to sell your business?)" Transworld is still staying yes. The quarter four numbers have shown that year-over-year there has been an almost 8% uptick in listings. What this number means is that there a plentiful supply of healthy business for buyers to purchase and that because the market is continually getting stronger more and more baby boomers will decide to exit their business. But the key piece of this discussion is that more and more millennials are cognizant of the strong economy and as such are looking to become entrepreneurs. And this all points back to the market becoming increasingly more in balance between sellers and buyers.
In summary, much of the trending data is still pointing to the fact that it is a great time to sell your business. If you have begun to feel the drag of your daily grind, now would be the time to consider your exit options. Or maybe you are a baby boomer yourself and are looking forward to retirement! Transworld recommends that if you're thinking of selling in 2017, that you reach out to your business advisor as soon as possible. A typical business sale can take anywhere from 6 months to a year, so don't wait - start planning your exit now!
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Rachael Holstein joined the Transworld Team in 2016 as Marketing Coordinator. Her working experience has been largely focused on Business Development and Marketing in the finance, architecture, property management, and information technology industries. A long time resident of Cleveland, Ohio, she attained her Undergrad from John Carroll University and a Master?'s Degree in Global Interactions from Cleveland State University. She relocated to Denver in 2013 for a change of scenery and a bit of adventure.
*Statistics stated within this blog post can be attributed to BizBuySell.com.