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2018 Will Be a Great Time to Sell a Business

By Generational Equity

2018 Sell A Business

A record high stock market, continued low interest rates and trillions of dollars in available capital will make 2018 an ideal time to sell a business, according to our M&A professionals at Generational Equity.

“The stars are definitely aligning for a robust seller’s market in 2018,” said Terry Johnson, Chief Revenue and Strategy Officer for Generational Equity. “Business owners that recognize this, and are wise enough to hire a professional M&A firm, will reap significant dividends.”

Three Key Factors

1. Record Stock Prices: Both the Dow Jones and NASDAQ are at record highs, which facilitates funding for publicly traded companies to expand through acquisitions.

“Acquisitions are often the fastest and most cost-effective way for public companies to grow to meet shareholder expectations,” says Johnson. “A rising stock market provides a wave of capital to fund deals.”

2. Low Interest Rates: Despite recent Fed increases, interest rates remain relatively low. The lower the rates, the easier it is to finance a deal. Even though the new incoming Fed Chairman, Jerome Powell, has indicated he will continue the policy of slowly raising rates in 2018, when compared to the long-term history of rate hikes, interest rates will still remain at historic lows.

3. Dry Powder: According to Bloomberg, private equity firms are “sitting on a record $963.3 billion of dry powder,” committed capital that they’ve raised, but have yet to invest. “Buyers are looking for well-run businesses where they can profitably invest these funds,” Johnson says. He added, “PE funds typically have a limited time frame for investing. Because of this we anticipate a serious uptick in acquisition activity from these groups.”

“Savvy business owners will consider these three factors when making the decision on the timing of their exit strategy,” says Johnson.

“The sad reality is that some sellers wait until death, illness or a myriad of other negative circumstances force a sale at a substantial discount,” says Johnson. “The right time to sell is when the market tells you it is time. Business owners that recognize this, and take action, will be rewarded.”

Attend a Generational Equity Executive Conference in 2018

With this strong seller’s market set to continue into the new year, 2018 could be the time to address your exit strategy and set the wheels in motion to sell your business. A helpful first step would be to attend an executive conference. At these events, our experienced M&A advisors will break down the M&A process, as well as share advice and tips for building a buyer ready business that will allow you to exit for maximum value.

Our executive conferences are completely complimentary, and are held regularly throughout North America - find one near you today on our website. Alternatively, contact Generational Equity on 972-232-1121 to talk to our professional team.

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We will highly recommend Generational Equity and Musa Jagne to any business owner about to embark on the same process.
Karen S. Williams, CFO, BW Manufacturing
We are very happy with the end result, and are very happy to be able to move forward with all of our future growth plans.
Rick Nowak, President/CEO, Kurz Electric Solutions, Inc.
Your wisdom and experience were invaluable to me during this once-in-a-lifetime transaction.
Ralph Noblin, President of Noblin & Associates
I would like to thank you and your firm, Generational Equity, for being our valued advisors in our journey.
Bil MacLeslie, CEO, ipHouse
I wanted to write you a quick letter to express our appreciation and our delight on the outcome of helping us through the process of our recent sale. We are very happy with the end result, and are very happy to be able to move forward with all of our future growth plans.
Terry D. Wickman, President, Keytroller
We thank you Eric and Generational Equity making our dream come true.
Larry Moore, Owner, A Company Portable Restrooms
I couldn’t have asked for a better team than Michael and Deborah. We couldn’t have done it without them.
Robert Evans, President and CEO of Mealtracker Dietary Software
We were happy to see the interest in our company and what we cherished has not just a valuable company but an important company to the communities we served in.
Larry Moore, Owner, A Company Portable Restrooms
Tom Staszak is one of the most professional people I have dealt with in my last forty years of business. You’ve got a great group of people and you have built a truly professional organization.
Michael J Polarek, President, Paragon Packaging
Michael worked tirelessly, He followed every lead meticulously and urgently to make sure nothing was missed.
Robert Evans, President and CEO of Mealtracker Dietary Software
We knew it would be a difficult task to have someone really understand our business and our market, prior to researching a possible buyer, so it was imperative that we found someone of your caliber, with definite proven experience in this area.
Rick Nowak, President/CEO, Kurz Electric Solutions, Inc.
Bruce and I wanted to take this opportunity to thank Generational Equity for assigning Musa Jagne to our transaction. In Bruce’s words, “Musa did one hell of a job for us!”
Karen S. Williams, CFO, BW Manufacturing
Thanks again Phil and feel free to have a future client call me if they would like a referral. You are a true professional!
Andy Graham, Vice President, Modern Heating & Plumbing
The help you provided us during each step of this process made us feel very comfortable and confident we were selecting the right approach to transition our Company.
Andy Graham, Vice President, Modern Heating & Plumbing
The process was much more involved than I expected and your help, experience and advice was a big factor in making the negotiations go as smoothly as possible.
Terry D. Wickman, President, Keytroller
I quickly recognized that Don was working for Sharpe Mixers above all else, and held our interests above others.
Jay Dinnison, Owner of Sharpe Mixers
Generational Equity educated and informed us – so that we could be on the upside of a good decision (to sell).
Bil MacLeslie, CEO, ipHouse
I must say that I have never worked with a more driven, competent and focused individual as Don Ho.
Jay Dinnison, Owner of Sharpe Mixers
Generational Equity’s assistance was invaluable in compiling and marketing our business.
Bil MacLeslie, CEO, ipHouse
We are extremely pleased with the way Generational Equity handled the sale of our company. Your associates, Tom and Chris, did an outstanding job of getting us (me) through the process.
Michael J Polarek, President, Paragon Packaging
Thank you again for all your guidance and support. Any company will achieve what they intend, if they have you on their team!
Rick Nowak, President/CEO, Kurz Electric Solutions, Inc.