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Insights

April 12, 2022

Why the Time to Sell Your Business is NOW!

Looking at selling your business, but wondering when is the best time?  In a recent presentation to the 2022 CEO Strategy Summit, Atlanta partner and M&A Co-Chair Rhys Wilson tells you “Why the Time to Sell Your Business Is NOW!”:

  • The M&A Market is hot and seller-favorable, with:
    • Record levels of deal volume,
    • High valuations,
    • Trillions of dollars in equity competing for deals,
    • Lots of low-cost debt available to buyers,
    • Limited universe of sellers, and
    • Favorable capital gains tax rates.
  • The M&A Market is facing powerful headwinds that will take some or all of the steam out of deal-making:
    • Labor shortages = rising wages,
    • Supply chain disruptions = rising costs & delays,
    • China’s COVID shutdowns,
    • Geopolitical uncertainty, e.g., Russian invasion of Ukraine,
    • Higher costs + delayed revenue = EBITDA squeeze, and
    • Rising interest rates = slowing economy and slowing revenue growth.
  • As a result, waiting until 2023 or beyond may not yield a higher sale price – and you may miss out entirely if the M&A Market collapses as it did in 2008!

For more details, check out the presentation video at Why the Time to Sell Your Business Is NOW! on Vimeo.