Recent trends have lead to more business owners beginning preparations to sell their companies. When asking an expert NY Business Broker what trends have lead to these changes, A Neumann and Associates points to the recovery of the economy and the fact that the first wave of baby boomers is getting older.
Let’s dive into this further. First, many business owners wanted to sell during the last 5-6 years however the economy was down. When the market is down especially down to such a large degree than many business owners are not as profitable and the true market value of their business is low. Buyers are not willing to pay based on past performance or future unjustified potential. Therefore, many business owners opted to wait to sell and now a surge of businesses are becoming available.
The 2nd trend according to A Neumann and Associates, a premier NY Business Broker causing more businesses becoming available for sale is that the first wave of baby boomers are turning 65. Many of them are opting to retire and are preparing to sell. As more baby boomers continue to retire, more companies will become available for sale. This is a big reason why many NY Business Brokers predict that half of the businesses will be sold in the next 15 years.
The trend of a higher supply of companies for sale presents a challenge for business owners. Supply and demand come into play and buyers have more options and more leverage in negotiations which could drive down purchase prices in certain business transactions. One current situation that helps is that there are a lot of business buyers waiting to purchase good businesses. Unfortunately, only 1% of business are sellable in their current state. They must make appropriate preparations and improvements to become appealing to business buyers. So what are the best solutions for these challenges?
First, business owners must plan ahead. Engaging with a reputable NY Business Broker can speed up the process considerably and get you far ahead of any competing businesses for sale. A Certified Business Valuation is also a critical step early on in the process. A Neumann and Associates has 25 years of experience and has completed over 5000 business valuations. A business valuation not only justifies the initial sales price, it also shows a buyer that the seller is serious and the company is worthy of an offer. The calculations, similar sales, factors and value drivers in a certified business valuation are very helpful to both the seller and buyer.
The seller will utilize this information to make improvements that can drastically increase the value of their business and make it much more appealing to buyers. From the buyers standpoint, they will analyze the information to gain comfort and confidence in an offer. There is not a better solution than to engage with an expert NY Business Broker such as A Neumann and Associates. Their commitment to excellence is strongly supported by their sterling reputation and long standing A+ BBB rating. For questions and more information on business transactions, exit planning, business valuations, tax planning, etc you can obtain a Complimentary Confidential Consultation by visiting the best business, contact A Neumann & Associates, LLC
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