Now Approaching: The 2019 optimal window to sell my business
If you have been thinking of selling your business for some time, yet you’ve never been 100% sure about taking the leap, well currently there are several indicators pointing towards a new 3-4-month window, which is optimal for selling your business.
We believe this window is from round mid-July 2019 to late September 2019.
"The main reason people don’t take the leap to sell their business, is because they don’t know what is involved in the process, and especially where to start."
If this is you, you can pick up the telephone and speak to virtually any Broker, who will be happy to answer questions on where to start and what to do next.
However, tread with caution here and use your own common sense and intuition – like any professional services industry, there are amazing and terrible Brokers. To speak with us at VBA, simply email email@example.com and we will organise a time to speak with you.
Now to the window. There are several indicators pointing towards the next few months being a good time to sell your business.
The first is the election results. The economy has reacted positively to the Coalition win, and the tailwind may last a few months. When economic sentiment is positive, more buyers are active in the market. We also believe that a lot of buyers have been waiting on the sidelines, until our election wraps up, and we expect them to dip their toes back into the market now.
The election results also speak to another factor, which is buyers borrowing ability. Impending interest rate cuts, changes to borrowing criteria, the Labor proposed negative gearing legislation, mortgage broker remuneration and franking credit reform - all of these are the backbone of a more robust borrowing to invest ecosystem. These drivers are already stimulating more confidence with buyers, and the more buyers that can and will borrow, the more buyers that will look at your business.
The trade wars between China and the US could pose an issue, and no one really seems to know how this will unfold. Experts are estimating that by around late September a level of economic impact of these negotiations should be felt here in Australia. Regardless of what happens between China and the US, I would want my business sale well underway before then!
Another factor contributing to this optimal selling window is the end of financial year. Proactive business owners have a great opportunity to stand out in the market by preparing their end of year financial numbers early.
Not many business owners have their end of financial year reports finished by the end of July so if you are one of the few business owners who deliberately gets these done early, we promise you, your business will STAND OUT in the market!
For those that are looking to sell, there is no sense waiting another few months until they’re due if it means increasing your chances of selling for a premium price now. This is also a great place for you to start on your business sale journey. Looking at these numbers now will empower you to make decisions.
Of course, identifying the most optimal window is often about looking internally as well as considering external economic factors. If your business is/has:
✓ Shown growth in the last 12 months
✓ Less reliant on your role in the business
✓ Demonstrates future growth potential
Then now is a great time to realise a great price for your business. Buyers are looking for:
✓ A business that is established with a good track record
✓ A business they can add value to and improve by being more involved than you
✓ A business that will continue its growth
Whilst it may feel counterintuitive to sell when your business is on the way up, you never know when it will be on the way down, so be smart and “sell high”.
Happy buying and selling!
From all of us at Vision Brokers and Advisors, we really look forward to working with you.
(m) 0401 620 918
(t) (02) 8923 2632
(m) 0450 326 146
(t) (02) 8923 2632