3-Point Action Plan for Exit Success
Avoid the Perfect Storm
Where will your business be in two years? Hopefully not in the midst of a ‘Perfect Storm’.
The ‘Perfect Storm’ conjures up a powerful image of being overwhelmed and completely at the mercy of raging forces beyond one’s control. Feelings of desperation, fear and anxiety abound, just hours after sunny skies and smooth waters prevailed. How could things turn so quickly? Could preparation have made a difference? Did the forecast predict this calamity?…
According to the speaker, William Stone, PNC Chief Investment Strategist, the US economy is in the 62nd month of an economic expansion. The longest US expansion on record is 120 months which spanned 1991 to 2001. Many have been exceptionally shorter. So the natural question is where we are now. Mr. Stone gets this question frequently. His view is the expansion is “middle aged” with good fundamentals for continued viability. However, Mr. Stone was quick to point out that this expansion could shift prematurely, based on unforeseen events. But the chance of it extending beyond the current 120 month record is highly unlikely.
So how long will sunny skies and calm seas prevail? Perhaps as long as 58 months but most likely we’ve got about 24-36 months to reap the benefits of growth, stability and expanding opportunity. Looking at the calendar that means we have until September 2016 before storm clouds begin to collect on the horizon.
Complicating the forecast is the dynamics of the mass of baby boomer business owners who seek to exit their business. This retirement trend was documented by the IBBA (International Business Brokers Association), The M&A Source, and Pepperdine Private Capital Markets Project, along with other surveys, which note:
- 40% of family owned businesses expect to change leadership within 5 years
- 7,000 businesses were sold in 2013, a 50% increase over the prior year
- 65-75% of small businesses will sell within the next 10 years
- The top reason for owners considering a sale is retirement, followed by burn-out
Do you see a Perfect Storm brewing?
For the rest of the article, click: A Three Part Action Plan for Exit Success.
The Summit Acquisitions Group — Business Brokers and M&A Advisors — specializes in the sale, appraisal, and financing of privately owned companies ranging in valuation from $750,000 to $25,000,000. Contact their offices in Atlanta, GA or Charlotte, NC for a free consultation.