Business for Sale? The Outlook for Selling Your Business in Maryland and the Mid-Atlantic is Projected to be Strong
As we near the end of 2014 I can’t help but start to think about what might be ahead for next year. Truly 2014 has been a much better year both for business brokerage and for the profitability of the businesses we work with. Sales are up and profits are back. Buyers are making offers and moving forward. With that in mind what does next year look like for those that want to sell or exit their business?
What others are saying:
2014 Pepperdine Private Capital Markets Report provides an incredible amount of insight and data through its survey of market participants. Key findings include that all sizes and types of businesses are selling. All market participants expect 2015 to be busier. Interestingly the time it takes to put a transaction together is lengthening but businesses are expanding, profits are increasing, and business value and prices paid for businesses are increasing. If you really love data and detail you may obtain the full report by clicking here.
Biz Buy Sell the leading marketplace for small businesses reports that sales volume is up significantly and that both buyers and sellers are confident they can complete deals through 2015. Buyers are now paying 95% of asking price and Sellers are raising average asking prices 5%. The good news is that these price increases have been supported by improving seller revenues and cash flows. For details click here.
CFO Magazine reported that the SBA 7(a) program approved a record 19 Billion Dollars in loans. 19 Billion Dollars in loans is made up of 52,044 individual approvals up 12% from 2013. The SBA guaranteed loans have been a lifeline to small business with every year since 2011 being a record year. According to the article originally 17.5 Billion Dollars was authorized for 2014 but because of the increase in demand due to the economic recovery the authorization was increased. For details click here.
Overall the jury says that the market will continue to improve next year. I believe next year may be the best year of the decade in which to sell your business.Gregory Caruso, Esq., CPA, CVA Business Brokerage, Business Valuation Mid-Atlantic States www.harvestbusiness.com