Major market changes predicted according to the IBBA and M&A Source Market Pulse Survey Report. This survey includes market conditions for businesses selling in the Lower Middle Market (values $2MM-$50MM). Here are some insights from the report.
Most Noticeable Fact
One of the most noticeable facts to come out of the report is the fact that one-third of advisors expect the strong market to end this year. Advisors are not confident that the current climate will continue through 2020. They feel that sellers should consider placing their businesses on the market now, while we have a strong market.
Here are some other facts that came out of the report:
- Only 8% of advisors expect the current climate to last for four years or more.
- Only 9% believe that the current climate will last between two to four years.
- 60% of advisors feel that the current climate will end within the next two years.
Almost two-thirds of advisors feel that there will be a significant shift in the next two years. Business owners need to consider that it can take a year or more to sell a business. A lot of deals are taking longer in due diligence.
Is now the right time to sell? Maybe. You could lose a sizable amount of value if you wait too long to sell. Even a few months can make a difference. EBIT Associates can help you determine if it’s the right time to sell your business and ensure you get the best possible price.