Is It A Good Time To Sell My Manufacturing Business?
Here’s the question I’m most often asked by potential clients, “Is it a good time to sell my manufacturing business?” For many, the sale of their business will affect their lifestyle in retirement. Many who planned to retire several years back, couldn’t do so after the financial crises and their stock portfolio losses. Now they’re wondering if the time is right to sell. In a word, YES, and there may never be a better time. Here’s why:
Private Equity Fundraising Nears Record Levels
One of the key factors is the availability of funding to make acquisitions. A key indicator of this is how much money private equity firms have raised. This is a critical factor because equity firms must invest committed capital in order to earn a return for their limited partners. 2016 was a record year for fundraising. According to Mergers and Acquisitions magazine :
“The private equity coffers are primed for M&A deals in 2017, thanks to successful fundraising in 2016. The dollars raised were on par with 2014, the best year since the financial crisis, according to preliminary data from Preqin. In addition, 2016 was the fourth consecutive year in which annual fundraising totals exceeded $300 billion.”
Individual Buyers Are Seeking Manufacturing Acquisitions In Record Numbers
Private Equities aren’t the only ones buying. Individual buyers are giving institutional buyers some serious competition for the acquisition of manufacturing companies. In fact, lower middle-market companies are being acquired by individual buyers in record numbers. These buyers are typically younger baby boomers seeking to control their destiny and build their own fortunes through an entrepreneurial endeavor.
The Changing Tide Of Interest Rates & The Affect On Manufacturing Acquisitions
An uptick in interest rates means that a buyer can acquire less company. Because interest rates rose in March, and are expected to increase 2 more times this year, buyers want to buy NOW.
At Accelerated Manufacturing Brokers, Inc., we’re seeing a marked decline in the time it takes to sell a business. We’re also receiving multiple offers on each business sold.
We’ve got quality buyers with their financing lined up, waiting for new listings to become available. If you’re wondering if it’s a good time to sell your manufacturing business, the answer is a resounding YES, and there truly may never be a better time.
At Accelerated Manufacturing Brokers, Inc., we’re seeing a marked decline in the time it takes to sell a business. We’re also receiving multiple offers on each business sold.
We’ve got quality buyers with their financing lined up, waiting for new listings to become available. If you’re wondering if it’s a good time to sell your manufacturing business, the answer is a resounding YES, and there truly may never be a better time.