After a challenging year, many business owners are calling it quits in 2021, but not for the reasons you may think. A surging economy, the prospect for rising taxes, and buyers flush with cash have created a perfect storm and making this potentially the right time to sell a business.
A growing number of buyers with cash on the sidelines has created significant opportunities for business owners ready to sell. According to a recent industry report, while the pace of recovery has varied among companies and sectors, and some have faced fundamental changes as a result of the health crisis, U.S. deal volume and value overall are up from 2020, with 2021 deal volume expected to outpace last year.
While demand among buyers continued to grow throughout the pandemic, supply remained relatively low. Many owners of businesses that were adversely impacted by the pandemic were waiting to recover before selling. However, as more businesses reopened this year, many owners have seen a resurgence in business value due, in part, to pent-up consumer demand.
While the decision to sell a business should never be predicated on taxes alone, the potential for higher tax rates is a consideration, especially among business owners planning to retire in the next few years.
Is this the right time to sell your business? BEACON Business Group can you help you find out. Start the selling process now by getting an accurate, professional valuation of your business at no cost or obligation.