The other day, I was on a conference call with a potential seller and his accountant. Near the front end of the call, the potential seller indicated that he was nearing retirement, getting tired, and wanted to sell his business, but only if market conditions are right. A variation of this conversation is part of virtually every discussion that we have with our prospective clients. In order to answer it properly, we believe that it is appropriate to dig down and consider several factors in defining the market. Below are some of the factors that we consider.
Global and monetary: Overall there is a lot of transaction activity, in large part due to strong economic conditions and the availability of capital at historically low rates.
Industry: This varies by sector. Certain industries such as healthcare and aerospace are very strong, while other industries such as oil and gas are more volatile at this time.
Geography: As the majority of the businesses that we represent are located in the Rocky Mountain Region, we are fortunate to be located in one of, if not the strongest, market in the country due to job growth and migration.
The bottom line is that we are enjoying an exceptionally strong market for most industries and if you are considering the possible sale of your business within the next three years, now is an appropriate time to consider your options. Obviously, the time needs to be right for you relative to your defined goals and objectives. The team at The FBB Group, Ltd. is available to consult with you on a confidential, no obligation basis.
(originally published in the December 2019 eNewsletter)