Best Time To Sell Your Raleigh Business?
There is an old adage that most everyone in business has heard, “Buy low, sell high.” This reason this quote has been around for centuries is because it’s true. This adage is especially true if you are considering selling your Raleigh business.
The Impact Of The U.S. Economy
Most everyone remembers 2008 and the recession. Jobs were hard to find, Raleigh businesses were forced to lay off employees, loans were next to impossible to get and Raleigh business owners couldn’t give their businesses away. If only we had a crystal ball, if we did, we would really know the best time to sell your Raleigh business.
There are many factors that influence one's decision to sell their Raleigh business: retirement, other interests, location change/move, health and burn out can each be contributing factors. The national and local economy also impact the business owner’s decision to keep going or sell their Raleigh business.
Most of us are invested to some degree in the stock market. I am not one of those that ride the daily rollercoaster of the ups and downs of the market. I have friends and family members that are in the financial industry and they watch the market continuously. Like a yo-yo, the market goes up and down with hopefully more ups than downs.
Today, the Dow Jones Industrial Average is over 26,000, three years ago The Dow was under 16,000. As a general rule let’s imagine for a moment that your retirement funds were distributed evenly across the Dow. Would you want to cash out your retirement fund at today’s value or at the 2016 valuation? Seems like a simple decision doesn’t it?
Many people, when they are thinking about selling their Raleigh business, do not apply the same principles as the aforementioned Dow Jones Industrial Average example. Many people simply do not see their Raleigh business as their investment. For these individuals, they see their investments as one thing and their Raleigh business as something entirely different from the national economy has little or no real impact.
Hopefully, 2008 taught us all a very different lesson and the lesson is that the economy has to be considered when one decides to sell their Raleigh business. Your Raleigh business and my Raleigh business are out to sea in a current that drives our businesses. This national economy is the current, even if we can’t really see it’s daily impact.
Raleigh Business Sales Trends
In 2017, the Triangle saw $15.5 billion dollars in business mergers and acquisitions. In 2018, these numbers will more than double. Across the country, business sales are up 15% according to Bizbuy.com.
One leading contributor to Raleigh business sells is connected to the aging of America’s business owners. It is estimated that baby boomer continues to own more than 60% of the privately owned business. In real numbers, this represents more than 12 million businesses owned by baby boomers that will soon be retiring.
These businesses are valued by some at more than 10 trillion dollars of total assets that boomers will be transferring to new owners over the next 10-15 years. As Raleigh business owners age they will consider their options regarding the sale and exit of their business.
Important to note - any of these boomer businesses for sale are very attractive investments. These businesses have been tested by fire and time and they are still standing and they are continuing to produce profits.
What Is Your Raleigh Business Worth?
There are a lot of Raleigh businesses for sale but an accurate business valuation will determine if they actually sell or stay “For Sale.” Transworld Business Advisors sale more businesses than anyone. For 40 years, Transworld has been helping business owners value, market their business, vet potential buyers, conduct due diligence, enter into a contract and sell their business.
Currently, Transworld has 3.5 billion dollars of business listings. We have offices in 16 countries and we are the world leader in business sales. If you are considering the sale of your Raleigh business give us a call and we will provide a free consultation and valuation.