If you are thinking of selling your business in 2023, you are probably wondering whether now is a good time. There are a lot of concerns about the economy. Inflation is at a 40-year high, and many economists are predicting a recession.
However, some companies are thriving, and we have buyers interested in acquiring these companies. Synergy Business Brokers has been selling profitable companies for over 20 years. As a result of selling our clients companies, our revenue has increased by over 50% for three years in a row. This has led to us being recognized as an Inc. 5,000 company and one of the top business brokers in the United States.
Market Conditions are right for selling a successful company in 2023
Because many sellers are concerned about selling a business in 2023, the number of buyers exceeds the number of sellers resulting in multiple offers for companies and the ability to negotiate the best price. This makes for favorable market conditions for selling a profitable business in 2023. Of course, if your company has suffered due to economic conditions, you may consider waiting if you think you can turn things around and start growing profitably again. But for companies that are doing well with motivated sellers, 2023 is an excellent time to sell a business.
The industries that we focus on are technology, healthcare, distribution, construction, manufacturing, services, and transportation. If you own a profitable company in one of these industries with annual revenue of $700,000 to $70 Million, we offer a confidential consultation to discuss your needs and give you an idea of a potential selling price.
When should you start the process of selling your business?
If you want to sell your company in 2023, the time to start the process is now. Although we sell some companies in only a couple of months, on average, it takes 6 to 12 months to sell a business. In addition, depending on the buyer, you may need to provide a transition. Some of our sellers enjoy this because it helps them to let go of their business over time and transition into retirement. We’ll help you to select the right buyer. One that you will enjoy working with and that you feel confident will carry on your legacy of treating your employees and customers right in addition to giving you a good price.
Ultimately the decision on who to sell your company to will be yours. However, we do encourage our clients to keep an open mind to a certain degree. We have found that the right buyer might be a private equity group, a wealthy individual with experience in your industry or perhaps a competitor or company in a similar market segment. We’ll screen the buyers for you, and you’ll get a chance to meet them before you accept any offer or decide to move forward.
Why are we confident that we can sell your business in 2023?
Having been in business for over 20 years, we understand which businesses our buyers will be interested in and at what price. If you’re not right for us, we’ll let you know. We are selective because we only get paid when your business is sold. Once we take on an assignment, we put more marketing dollars into promoting your business than any other business brokerage that we are aware of. We use Google, Bing, Yahoo, Youtube, LinkedIn, FaceBook, Bizbuysell, Businesseforsale, Hubspot, and more. But don’t worry; we don’t advertise the name of your business or provide identifying information until a buyer has signed a confidentiality agreement and provided information on their qualifications. We understand that you don’t want your customers, employees, and competitors to know that your business is for sale.
And since we specialize in selling profitable companies in specific industries, we have a large number of buyers that we have built up over the years that are interested in purchasing the types of companies that we focus on. In fact, we have 30,000 potential buyers throughout the US and overseas. Whenever we get a new assignment, we always have a number of interested parties, and then it’s a matter of going through them to see who wants to purchase a specific assignment and what they are willing to offer.
What about Business Valuations in 2023?
When interest rates rise, typically, business asset values decline. Interest rates had a dramatic rise in 2022, so business valuations have come down some. This is based on the average multiples of earnings that businesses sell for. However, in 2023 interest rates are trending down some. And there is no guarantee that they will go down to the levels they were at previously. So while buyers do have to pay a higher interest rate when purchasing a business with a loan, many buyers don’t need a loan. There is still plenty of demand for profitable businesses that, on average, provide a greater return on investment compared to other assets, such as real estate or the stock market.
In addition, if you are ready to sell, waiting and running your business when you’d rather be doing something else may result in a decline in both profits and valuation. Unfortunately, we have seen this happen to some business owners that put off selling their businesses and later regret it. So if your business is doing well and your ready, now would be the time to start the business sales process.
To start a conversation with one of our senior M&A Brokers about potentially selling your company in 2023, please complete our online form or call (888) 750-5950.
You can view our list of Sold Businesses and sort based on industry to see what types of companies we have sold in your sector. And you can read about our 15 step marketing process to maximize your sale price and find the right buyer confidentially. Synergy Business Brokers has won many awards as a top business broker in the country.