Now is a great time to get a Business Valuation done for your Florida company. Why? Because the cost of funds to buy a business is at a historic low, not seen since the 1950s. Meaning, it is cheaper for potential buyers to purchase a business, and that can translate to higher valuations for sellers. Furthermore, the low cost of funds can make it easier for businesses to secure financing for growth and expansion. And such, can also increase their value.
Additionally, the amount of “dry powder” that private equity firms hold is at an all-time high. Dry powder refers to the amount of cash that private equity firms have available to use when investing in new opportunities. With more cash on hand, private equity firms can make more acquisitions and invest in more businesses. Such can lead to more competition for businesses that are for sale. This can also drive up valuations for sellers, as more potential buyers can bid on a business. Additionally, private equity firms can also bring a lot of resources to a business, such as management expertise, which can help to increase the value of the business.
Know the market price for a controlled sale. Transfer now to heirs, or research what steps you need to take to get the maximum post-tax dollars for the business you have spent many long years building.
LIBOR-based monies are as low as 2.9%, and SBA 7a loans are at 5.5%. So potential buyers of your business have access to very inexpensive funds. Also, top-line growth is tough, so it makes sense for larger companies in your industry and Private Equity sponsored companies to grow sales and additional distribution channels by purchasing well-run, smaller competitors or synergistic fitting companies.
For a relatively small investment of your monies and time, you can know the value of your business and have the solid information to move forward with your exit strategy. The information we need to get started is here in the Business Appraisal Checklist or call us at 561-325-9777.