Welcome to the Pacific M&A and Business Brokers’ video blog. My name is Andrew Brown.
How can market dynamics affect the sale of my business?
This is a great question I receive from business owners who are considering the sale of their business. The answer is that market dynamics can have a huge impact on the business transaction.
They can not only prove insight on how much you can expect your business to sell for, market dynamics can also provide insight as to whether it is a good time to sell.
If there are industry tailwinds driving an increase in the number of acquisitions happening in your industry, and an upward trend in sales prices, this could be a good time to sell. It can be difficult to make the decision to sell when you are doing well, but this is precisely the time to act. By selling when things are going well, you not only will be able to command a premium price, but the amount of time it will take for the transaction to occur can drastically be reduced.
The opposite is true for an industry where there are industry headwinds decreasing the number of acquisitions and driving down prices.
One of the benefits of receiving a valuation for your business from a third party like Pacific, is our access to market insight that is not publicly available.
Want to know whether it is a good time to sell your business?
Talk to us at Pacific M&A and Business Brokers where knowledge, experience, and trust come together.