There are 79 MILLION baby boomers in this country and within two to three years , those that own their own their own Businesses, are going to be selling their businesses ( approximately 15 million new sellers). Now is the best time to sell a business before this increase in competition takes place. Competition drives prices down and with more baby boomers deciding to sell over the next few years, you will get less money for your business if you wait.
The good news is that many small businesses appear to be getting healthy again so these next two years may be the prime time to sell. In addition, we are experiencing a period of very high buyer demand – there is a large contingent of buyers, with money, chasing very few deals. This is especially true for baby boomers who may be looking to retire in the near future.Just think about what it might cost if owners wait until after taxes eventually do go up. First of all, the ‘paper value’ of many business to make up for the lost tax money. Should the capital gains tax rate increases, as was planned, go from 15 percent to 20 percent, not including any increases in federal and state taxes, your sale proceeds will probably decrease between 11 percent and 15 percent.
To mitigate the effect of these tax increases a business owner needs to grow their top and bottom line by an appreciable amount just to stay even. So if you feel emotionally and financially ready to sell in the next few years, then now is the time to start talking with your advisors about how to best position your business to maximize the sale price and minimize any tax liabilities.
CALL US – WE CAN HELP YOU SELL YOUR BUSINESS AT THE OPTIMUM TIME. FREE CONSULTATION- 212 661-4160