Strong demand for corporate mergers and acquisitions over the next three years

If you’re going fishing, especially for walleye, it’s best to go at dawn or dusk when the fish are most active eating near shore.

You may be a night owl who likes to be active after 10 p.m., but that doesn’t change the fish’s needs or habits.

This analogy is true for mergers and acquisitions. After years of starting and growing your business, you might think you still have 5-6 years before you’re ready to sell and retire. However, you need to start preparations much earlier and be ready to hit the market when general conditions are best.

Based on a recent Forbes articlethese privileged conditions could occur in the next 3 years. The article says 60 percent of executives plan to complete an acquisition in the next three years, while 64 percent say they haven’t made one in the past three years.

Factors influencing the market include:

• Tax reforms under the Tax Cuts and Jobs Act of 2017 will expire in 2026.
• Interest rates fall, making it easier to obtain financing and affecting sectors influenced by interest rates.
• Political tensions are brewing and could create trade tensionssupply chain disruptions and international conflicts.
• Policy changes are expected in labor law, environmental policy and corporate governance.
• Workforce dynamics continue to evolve in unpredictable ways.

All of these factors could influence the future profits and stability of the business, making it more important to exit at the right time to maximize your profits. Developing an exit strategy early can help you identify actions to take that could increase the value of the business, give you peace of mind during a sometimes complicated process, and prepare you to act quickly in the face of changing market conditions.

The experts of Sunbelt Business Advisors can help you do just that. They can determine the value of your business now, plan strategically to strengthen your position, and identify the best potential buyers and marketing strategies.

Sunbelt Business Advisors are so confident in their approach that they are the only sales broker to guarantee you will have ten buyer leads within 90 days of listing. To learn more about Sunbelt’s process and get a free value range assessment, visit sunbeltmidwest.com.

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