14 Mar Why you Should Sell your Business in 2019
2019 is quickly becoming the hottest market for IT Services mergers and acquisitions. Some are saying it is the best market for M&A ever, especially in recent years. It’s a seller’s market and buyers are on high alert. If you are eventually going to sell your business (or acquire another firm) you should think about it now before a global recession. Here’s why:
HOT MARKET: Deloitte‘s annual survey for M&A trends notes 79% of respondents expect to see an increase in the number of deals over the next 12 months (up 70% from last year). WHY?
- Tax Reform
- Relaxed regulatory environment
- Fed raising rates
- Valuations are high
A hot market isn’t always going to be hot. The economy is steady, but a global recession is thought to be predicted by the end of 2020. There are other things to consider.
ADAPTABILITY: If you’re not embracing new cloud technologies, new vendor renumeration models, or subscription services and instead continuing things in a “business as usual” fashion, that may not work in the long run or even the short run based on what we are seeing today. Think about selling.
FINANCIAL: It’s likely your firm is the largest single asset in your personal financial statements. Now could be the time to take some chips off the table in your investments, de-risking your position as you look to the future.
RETIREMENT: Are you thinking about embracing retirement but not sure when? If those thoughts are already swimming around in your head, you may need to start a process now to have the firm sold in 2019.
STALLED: For the firms that are stalled and want to get to the next level – think about taking that leap to sell (or acquire) vs building from within.
Not sure if you’re ready for a merger or acquisition? Read our Five Steps Every IT Services Business should take to Successfully Prepare for a Merger and Acquisition blog post to help get you sale-ready + Three Things that will make your IT Services Firm ready for a Merger or Acquisition.
If you are ready – consider RRCG as your M&A advisor.