This year might be the best time for your business-owning clients who are approaching retirement age to sell their enterprises. In recent months media and professional service firms have been buzzing about the benefits of such deals:
And the timing might not last. Business sale pricing, like most economic events, is subject to certain natural and recurring cycles. Most M&A advisors agree that the economy will experience a wave-like motion over time, with cycles commonly running in six to 10 year waves. Acquisition opportunity normally rises when a) the cost of capital is low, b) growth opportunities abound, and c) significant advantages arise, capitalizing on technology changes. Sellers are benefiting at peaks reaching all-time highs. The timing is right also for obtaining cash to invest this year. Markets are humming at relatively high levels. Prices will likely moderate and allow for solid investment-buying opportunities over the next two to three years.
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