Market Pulse Report Boasts: It’s a Remarkable Time to Sell a Business

The Market Pulse is a quarterly report based on survey results jointly released by M&A Source and the International Business Brokers Association.  View or download the full report here.  The second quarter report for 2018 boasted:

“It’s a remarkable time to sell a business. Roughly 21% of advisors say 2018 is the best year they’ve ever seen for business owners to sell their business.  Another 37% say it’s the best time in five years, and 17% say its the best in the last 10 years.” – Market Pulse, Second Quarter 2018 Report

The report’s data supports the notion and market sentiment that now is the best time to sell a business for any owner looking to do so within the next 5 years.  Even for owners who are not ready to retire, the current market offers opportunities to take some money off the table.

Report Highlights:

Market Pulse Seller Sentiment Image

Seller’s Market Sentiment continued to climb higher last quarter as sellers remain optimistic about the market and their advantage in it.

Sellers received more cash at upon closing on the sale of a business during Q2 2018.  This demonstrates a strong, liquid market with lots of available cash for business investments.

Market Pule Median Multiples Chart
Market Pulse Seller Cash Image

Multiples remain high for the second quarter with strong valuations, particularly for businesses with over $5 Million in revenues.

Retirement remains a leading reason for business sales, across all market segments. Many Baby Boomer business owners are taking advantage of the strong market.

Reasons Sellers to Market Chart
Market Pulse Chart- Planning to Sell Image

Although the market for selling a business if very strong, exit and succession planning are important elements still often overlooked, overwhelmingly so in small businesses.  Owners who have planned ahead are able to extract greater revenues from the sale as well as more favorable terms.

Download the full report on IBBA’s website, here: https://www.ibba.org/resource-center/industry-research/

2018-08-31T06:17:15+00:00