I sound like a car salesman, I know. But consider this: Capital gains rates WILL increase. There will be a large knot of baby boomer business sellers coming on the market. There is a surplus of acquisition capital with no where to go. IF you are a stable, performing company then this may be the very best time to sell.
Capital gains rates will increase
It really is a matter of when, not if. It could even be that it will happen next year and be retroactive to the beginning of 2010 in which case it is already too late. But it will likely happen in January of 2011, as mentioned in this recent WSJ article:
Bulge of Baby Boomer businesses coming on the market
Business brokers and M&A guys like me have been hearing about this for years. It was supposed to happen, well, now. The recession changed that, but the fact remains that many, many businesses are owned by aging baby boomers that are looking forward to retirement. As things pick up, more of them will come on the market, with the expectations that it will be harder to sell and that prices will be impacted downward.
Surplus of Acquisition Capital
I received a call from an acquaintance at a large private equity group for the lower middle market in
Things are looking up in the M&A market. I’ve signed three letters of intent in the last three months on the west coast. One has close while two others are scheduled for the end of the year.
Finally, consider that it takes 6 to 12 months to sell a business and that the first few months of the year are the best time of the year to market a business for sale. That doesn’t leave a lot of time….