If you are not in the process of selling your business right now, you are making a Huge Mistake. You will never receive more money for your business than you will now. Waiting will cost you money.
When interest rates rise, your business’s value drops immediately! Do you really think there is any chance that interest rates will not rise given the actions of Obama and this Congress?
When Capital Gains rates rise, the amount you put in your pocket is reduced! Obama has promised to let the Bush tax cuts expire.
The SBA is now restricting financing of ‘Good Will’ to a maximum of $250,000. And they will only allow 50% of this for financing, or $125,000. This put a HUGE road block to those business owners that want to sell an existing business where much of the value is in ‘Good Will’. This will result in large decreases in business values immediately.
The details of Obama’s new policies are being unveiled and they should be alarming to most business owners.
Check out this reputable website for information about selling your business.
2 responses so far ↓
Alex Shteriev // November 16, 2009 at 10:00 am |
Staying away from the political implications of governments, I was just reading some information from the Family Firm Institute that approximately 2/3 of baby boomer business owners in the US and Canada will not be passing their family owned business to their children. This is a huge pool of potential sellers – and only the most prepared and best positioned will be able to get a top dollar for their business.
Toronto Business Broker // November 18, 2009 at 1:40 pm |
We are not sure about the exact number of businesses owned by baby boomer owners in Canada, however, in the US it is estimated that over the next 12-15 years around 10 million businesses will be sold. This is quite the wave that will hit the market place and business owners really need to plan ahead to position themselves correctly in the marketplace. Our market, Toronto, which historically has a lot of ties with the US and follows similar development trends, will be one of the most active with anywhere upwards of 10,000 businesses changing hands annually.