Q: Interest rates are up, we’re in a tentative economy, and heading into an election year- is the market still strong?
JT says: Since 2007 I’ve specialized nationally in restoration companies. Over these 16 years there’s been a recession, 4 elections and a pandemic. The industry has remained strong through it all.
Currently however, elevated interest rates have taken a real toll on businesses below the SBA threshold of $5M in Value. (Many buyers simply aren’t willing to pay variable rates currently reaching 10.5%.)
Businesses from $6M – $100M in value, ideal targets for industry strategics and Private Equity, have not been affected. In fact, as the supply of privately held independents begin to diminish, both prices and multiples are climbing. Buyers in this range are still very hungry.
The timing of a sale is often very personal to you and your family, rarely should it be dictated by external events. If curious, receiving answers early will help ensure your best possible future, exit and timing.
Get Answers + Get Prepared = Get Retired
Have a question for JT? Don’t worry, all questions will remain anonymous! You can email JT at jt@exitstrategies360.com.
