As a business owner considering the sale of your company, you may be asking yourself, “When is the right time to sell?” The answer is simple. The time is now.
The global recovery is underway, and 2021 has given us several reasons to be highly optimistic, and these reasons are why you should take action.
In 2020, even amid the pandemic, more than 50 percent of deals still closed in the 8x-15x multiple ranges.
Other Considerations for U.S. Business Owners
In the long term, taxes are expected to increase in the U.S. in order to pay for the federal COVID-19 relief and stimulus packages that drove up debt in 2020. And now the United States now has a new presidential administration. President Biden has proposed tax hikes on long-term capital gains for those making over $1 million. These tax hikes are more possible now that Democrats control the House and the Senate. This is driving more owners to want to sell before the tax policy can be changed, which does take time. Nonetheless, closing sooner could shield you from potential capital gains increases.
Make Your Move Today
2021 is already the prime time to get your business on the market, but keep in mind that M&A transactions don’t happen overnight. It can take several months to complete a deal and plan your exit strategy. The sooner you get the process started, the better positioned you will be to get the deal that is best for you, and the less likely you will be to miss out on a great opportunity.
Americas: Sam Smoot at +1 (813) 898 2350 / Smoot@BenchmarkIntl.com
Europe: Michael Lawrie at +44 (0) 161 359 4400 / Enquiries@BenchmarkIntl.com
Africa: Anthony McCardle at +27 21 300 2055 / McCardle@BenchmarkIntl.com
ABOUT BENCHMARK INTERNATIONAL
Benchmark International’s global offices provide business owners in the middle market and lower middle market with creative, value-maximizing solutions for growing and exiting their businesses. To date, Benchmark International has handled engagements in excess of $6B across various industries worldwide. With decades of global M&A experience, Benchmark International’s deal teams, working from offices across the world, have assisted hundreds of owners with achieving their personal objectives and ensuring the continued growth of their businesses.