1. The Government realizes that creating new jobs is critical to getting the U.S. economy back on track. |
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Since over 60% of new jobs are created by small businesses, new programs to assist in financing and growing these businesses are already in the works. This is great news for prospective buyers of businesses like yours.
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2. The Small Business Administration (SBA) has created incentives for banks to increase lending. |
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The American Recovery & Reinvestment Act of 2009 enabled the SBA to increase their guarantee of small business loans from 75% to 90% and waive the fee the SBA usually charges to borrowers. This is great news for buyers in need of a loan to buy a business; and its great news for sellers who may be reluctant to hold large notes for buyers of their businesses. The program has been extended through April 2010 and will likely be extended through the end of the year.
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3. Small business acquisitions can offer a better return than traditional investment opportunities. |
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Buyers in every category are looking for alternatives to traditional investments. These buyers include: a) Early corporate retirees and
b) Management-level employees, both of whom have significant severance packages and/or substantial retirement funds to invest; c) Foreign buyers looking to take advantage of the strength of their currency against the U.S. Dollar; Strategic buyers who are actively acquiring smaller firms as part of their strategy for rapid growth and innovation; as well as e) People looking to "buy a job."
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4. The current capital gains tax rate of 15% is the most favorable it has been in the last 30 years. |
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However, effective January 2011, this rate could increase to 20%, and this does not include any changes that might come from increases in state and local taxes. These increases could have a significant negative impact on the amount of money you receive from the sale of your business.
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5. It may surprise you that, even in our current economy, buyers outnumber sellers! |
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In 2010 there is a pent-up demand for business acquisitions because access to capital has been so tight over the last 24 months. The time will come, however, when the flood of baby-boomer business owners who are ready to sell will outnumber buyers. In other words, wait too long and more businesses will be for sale with fewer buyers to buy them.
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"There's no time like the present!" You've heard the phrase... well, with the government making capital more available to buyers of small businesses, interest rates at historic lows, the capital gains tax at the lowest it has been in 30 years, and all categories of buyers are in the market... there really is no time like the present. For so many reasons, 2010 really is the year for smart business owners to explore their opportunities to maximize the value in the sale of their businesses.
Here's how we can help... the principals of Commonwealth Business Solutions have been helping business owners maximize the value in the sale of their businesses for more than 25 years. We handle all sales with extreme confidentially and we don't waste your time with buyers who are not financially well qualified.
So, if you've been wondering if now is the time to sell your business and would like to explore your options, give us a call and benefit from our experience and expertise. We'll meet with you at your convenience, at your office or ours. And don't worry, there's no charge for our initial consultation. So, what have you got to lose? Call Bette Wildermuth at 330-7505 to set up an appointment. |
