5 trends driving a Seller’s Market

A More Balanced Marketplace – 5 trends driving a seller’s market

Business sellers continue to be very confident. They believe they can sell their companies at an acceptable price. This confidence level continues to rise.

5 trends driving a Seller’s Market

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5 trends driving a Seller’s Market

  • Improved financials are driving increased seller confidence. Businesses are performing better generating increased profits. Improving small business environment and overall economy is the single greatest factor driving the market.
  • Buyers are more realistic. The general buyers attitude remains confident. Their outlook is slightly less confident than prior years because of their perceived ability to acquire a business at a good value.  The trend supports the notion that the market is becoming more balanced for both buyers and sellers.
  • Improved personal financials.  Stabilization and improved personal investments has given potential buyers the capability and confidence to chase the dream of business ownership.
  • The buyer/seller financing gap is closing. One half of the buyers expect to rely on seller financing, but only 25 percent of sellers plan to offer financing. This creates a significant gap and opportunity for those sellers who are truly motivated.  The trend of seller carry continues to rise as the market shifts more towards a “seller’s market”.
  • Sellers are eager to retire. 75% of the buyers want the seller to stay involved with the business.  The role of the seller’s participation in the business can vary from a variety of levels – consulting as needed, part time schedule or an employment agreement for years. 30 percent of sellers don’t want any involvement with the company post-sale. These stats indicating that many sellers’ want to retire–the number one reason driving business owners to sell.

The fundamental rules of selling a small business still apply. The most qualified buyers are looking for stable and growing small businesses. A well documented history of positive earnings and a diversified customer base is most attractive.

Sellers will increase their probability of selling by:

  • Providing accurate financial information
  • Pricing the business at a realistic asking price
  • Offering some portion of seller finance
  • Arranging pre approved lending for the buyer
  • Making yourself available to continue with the business

Chris Kerth begins the sales process by offering a Free, No-Obligation Market Analysis and we only get paid when the deal closes.

Let Chris Kerth with Murphy Business sell you’re Business.

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913 207 2770

 

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