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Is 2017 the best time to sell your business?

One question we are often asked is when is the best time to sell a business.

This question reflects a desire to time the transaction to get the best result. This is inherently risky, considering how rapidly things change. A reality today is that change is a constant reality.

Sometimes we answer based on the condition of the business or the motivation of the owner. For example – “When it is doing really well” or “before you get tired of running it”.

Another approach is to relate the answer to phases of the economy, or what is going on in the world. Looking at this second approach, we have to deal with the question “Is 2017 the time to sell my business?”

There are a lot of reasons to answer in the affirmative.

One of the most important reasons is that it is best to sell your business when buyers feel optimistic about the economy. The National Foundation of Independent Businesses recently put out a study that the level of optimism is way up, with the biggest spike in years.

Another reason is that interest rates are still historically low. Even though they are trending up and the Fed is projecting more increases they are still much better than they have been in most of the 30 years I have been selling businesses, and they are better now than they will be in the future.

We are being courted by bankers all the time to bring them loan applications for deals to fund. As everybody has heard their underwriting standards are tougher under the current federal rules, but they have money looking for a place to be invested.

As we have grown out of the hole most businesses went into in 2008 and 2009 the long slow recovery has put most businesses in a profitable position again, and some of them really profitable. If your business is one of those the last three years gives us a chance to put you on the market with a great financial chart showing positive growth.

With the change in administrations there is an anticipation of tax changes coming, this leads to more positive feelings on the part of buyers.

It also may lead to lower taxes on the deal for sellers.

Last year was our best year in a long time in terms of sales activity. All factors point toward 2017 being even better. So

YES! 2017 is the best time in a long while to sell your business

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