With 6 months left in 2013, now's the time to consider selling a business.
Waukesha, WI (PRWEB) June 27, 2013
The news is out. It is a seller’s market in the business transaction arena right now. Simply put, many more buyers are looking for good businesses to buy than are on the market for sale.
Private equity groups and mid to larger sized companies have large cash reserves, and they are actively looking for the next “right” investment for 2013. Reportedly, private equity firms have $400 billion of un-invested funds, and corporate balance sheets have $1.7 trillion of cash on-hand nationwide. And, a large number of displaced operating executives are searching for smaller businesses to acquire and run themselves, using their savings and 401K accounts to fund the transaction. Banks are lending again, and they are beginning to pursue new business aggressively with the backdrop of historically low interest rates.
Business owners, though, have not yet put their businesses up for sale in sufficient numbers to meet this rising demand by buyers. While business owners’ operating results have certainly improved over the past two to three years and so have business valuations, business owners may be waiting a little longer to allow the full effect of their earnings improvements to solidify (typically three to four years of history is very desirable) so they can get an even better price at the time of sale. And, they may be wishing to repair some of their personal financial damage experienced during the great recession before “cashing out”. If the economy stays on track for a while longer, one would expect to see the number of seller’s increase dramatically—perhaps yet this year. With 6 months left of 2013, now is an excellent time to consider selling a business.
But, what about those Owners who are in “business building” mode? How can they use the current “seller's” market to their advantage? Interestingly, Bill Casey at VR Lakes Business Group, Inc. is seeing some very smart business owners do just that! Here’s how:
These successful business owners have done their homework and done their strategic planning. They have clearly identified their target markets and customers, and they are deploying their resources with laser-like focus to yield maximum results. They want to rid themselves of any distractions from their core activities. They have identified their non-core assets-- whole companies, individual product-lines, operations, and/or equipment. And, they are taking advantage of the current, ideal conditions in this “seller’s” market to “carve-out” and sell these distractions while using the proceeds from the sale to re-invest into their core activities.
Whether these non-core assets are a solidly profitable or they are “diamonds-in-the-rough”, these “carve-outs” are getting more time and consideration from buyers than normal. And they are selling, especially when they are properly positioned to the “right” group of buyers as logical “add-ons” to their existing businesses.
If a Business Owner is considering the sale of their business, or they want to learn more about “carving-out” non-core assets, now is the time to contact VR Lakes Business Group, Inc.'s office to discuss their situation. VR Lakes Business Group, Inc. can help Owners position their business or “carve-outs” to the “right” buyers for maximum benefit, and help them take full advantage of the current “sellers” market.
This 2013 Business Climate update was provided by Bill Casey, Senior Vice President at VR Lakes Business Group. VR Lakes Business Group, Inc. is the premier business brokerage company in Wisconsin, helping business owners successfully sell their businesses or acquire new ones. Contact Bill Casey at 262.347.2083 or bcasey(at)vrbizlakes(dot)com.