Is 2020 the Year to Sell Your Business? by Judd Appel, ABV

Middle-market M&A activity remained strong throughout 2019, boding well for record fundraising and deal-closings to exceed the highs of 2018. In North America, alone, mega-deals helped to move the markets toward another year of more than $2 trillion in deal volume.

The endurance of the country’s economic expansion coupled with a rising stock market and record-low interest rates have created an abundance of deep-pocketed buyers looking to diversify their portfolios with business assets that can survive a market downturn. EV/EBITDA multiples have remained elevated at 10.4x, while high-net-worth sellers have yielded significant tax savings by closing deals under the new tax law.

As we enter 2020, it is equally important to recognize that we are in an election year, which has historically strengthened the financial markets. In contrast, markets have trended negative in the years immediately after a presidential election. With this in mind, business owners should meet with their advisors now to reassess their exit strategies for the future. In many instances, it will make sense for an owner to expedite a business sale in 2020 to take advantage of the current economic environment and avoid the financial risks that can come with a new administration.

The professionals with BayBridge Capital Advisors and Berkowitz Pollack Brant Advisors + CPAs have deep experience helping domestic and international businesses develop and manage succession plans, exit strategies and other liquidity events, including raising capital, exploring M&A opportunities, and managing buy-side or sell-side deal processes. Our coverage includes preparing companies for sale and identifying potential buyers, managing and conducting financial and tax due diligence, negotiating contracts, executing deals and providing integration services.

About the Author: Judd Appel, ABV, is a director with BayBridge Capital Advisors, an affiliate of Berkowitz Pollack Brant Advisors + CPAs that helps businesses raise capital, explore strategic alternatives and improve financial performance. He can be reached at the firm’s Miami office at (305) 960-8858 or jappel@baybridgecapitaladvisors.com.

The professionals with BayBridge Capital Advisors have deep experience helping domestic and international businesses develop and manage succession plans, exit strategies and other liquidity events, including raising capital, exploring M&A opportunities, conducting financial due diligence, negotiating contracts, preparing companies for sale and identifying potential buyers, sellers and acquisition targets.

About the Author: Judd Appel, ABV, is a director with BayBridge Capital Advisors, an affiliate of Berkowitz Pollack Brant that helps businesses raise capital, explore strategic partnerships and improve financial performance. He can be reached at the firm’s Miami office at 305-960-8858 or jappel@baybridgecapitaladvisors.com.

 

 

 

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