Prepare to Exit: Demand Strong for Business M&A Over Next 3 Years

If you’re going fishing, especially for walleye, you’d best go at dawn or dusk when the fish are most active eating near the shore.

You might be a night owl who likes to be active after 10 p.m., but that doesn’t change the fish’s needs or habits.

That analogy holds true for mergers and acquisitions. After years of starting and expanding your business, you might think you have another 5-6 years until you’re ready to sell and retire. However, you should start preparations much earlier than that and be ready to cast into the market when overall conditions are best.

Based on a recent article in Forbes, those prime conditions might fall within the next 3 years. The article stated 60 percent of chief executives plan to finish an acquisition in the next 3 years, while 64 percent said they have not completed one in the past 3 years.

Factors influencing the market include:

• Tax reforms under the 2017 Tax Cuts and Jobs Act will expire in 2026.
• Interest rates are declining, both making financing easier to achieve and affecting industries influenced by interest rates.
• Political tensions are simmering that could create trade tensions, supply chain disruptions, and international conflicts.
• Policy changes are expected in labor law, environmental policy, and corporate governance.
• Workforce dynamics continue to change unpredictably.

All these factors could influence future profits and company stability, making it more important to exit at the right time to maximize your profit. Developing an exit strategy early can help you identify action steps that could increase company value, give you peace of mind during a sometimes complicated process, and prepare you to act quickly to changing market conditions.

The experts at Sunbelt Business Advisors can help you do just that. They can determine your business value now, strategically plan to strengthen your position, and identify the best potential buyers and marketing strategies.

Sunbelt Business Advisors are so confident in their approach that they are the only business broker guaranteeing you’ll have ten buyer leads within 90 days of listing. To learn more about Sunbelt’s process and get a free Value-Range Assessment, visit sunbeltmidwest.com.

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