Economic indicators and demographics are suggesting an improved environment to sell a business. As the saying goes, “buy low and sell high”, and a recent article on Inc. Why Now’s The Time to Sell Your Business explains why now might be the high-selling time.
BizBuySell recently reported that in the first three months of this year, the number of closed small business sales jumped 56 percent from the same time in 2012. The article quotes that retirement was the number one reason for those sales according to a survey by Pepperdine University and two trade groups.
Here are 5 trends that may have you considering to sell your business in the next few years…
Click here to read them all on Inc. now.
According to this chart, 16.3 percent of the population will be more than 65 years old by 2020, a 31 percent increase from 2000. By 2040 one in five people in the U.S. will be a senior citizen. There has already been a latent supply of businesses reaching the market, and waiting to compete with many other retiring sellers could make a sale more difficult.
A study by Barry Ritholtz, shown on the left, revealed that long and short term interest rates are as low, or lower than they have ever been in our nation’s history. These low interest rates indicate that “there has never been a better time to sell your business”, says Ritholz. The data shows that it’s prime time for investors to borrow money and buy assets like a business, where they can get a loan and use it to purchase a company with potential to return a double-digit profits. “If your company falls into that category then now is a great time to offer it up to a hungry buyer looking for an opportunity.”
Read the full article and additional reasons on Inc. here: Why Now’s the Time to Sell Your Business