by Ray Hayes
Are you in the market to sell your business? Well, buyers are extremely interested and willing to spend big. As reported by CBSnews.com, “Buyout activity is booming for American small businesses, and the prices being paid are at or near records for companies up to $50 million in value, brokers say.”
Most business owners who are putting their business on the open market are yielding multiple bids due to lower taxes and decreased regulations. Baby Boomers are also a big contributor to the recent trend due to the fact that most from their generation are looking to sell and retire. Moreover, companies interested in expanding see an acquisition as the quickest and simplest way to get skilled workers in today’s tight labor market.
Mike Shea, president and CEO of Shea Barclay Group spoke with CBSnews.com about how the recent jump in activity has benefited his company. “It’s really unprecedented, not only has the volume of deals, but the competition for dealt. We’re excited to be on the buy side, but we also take into consideration that it almost reminds you of the housing market: Are we at the peak?”
Many experts have also chinned in on the recent activity and provided some insight into what small business owners should take into account:
Craig Everett, finance professor at Pepperdine Graziadio Business School, said the following, “A lot of times the owners wait a little too long to sell,” said Everett. “They wait until the business starts to stagnate, and then they think of getting out.” But owners will always get a better price when their business is growing.”