No one can accurately predict with any degree of certainty what the market will look like in two to three years. Even today, some experts predict that we are headed for a recession sometime during 2019 through 2021. For the lower middle market, that might not mean much, especially if you are stable now and are always looking ahead. However, if you were already thinking of getting out of the game, now might be a good time with the recent lack of clarity for the years ahead.
Why aren’t lower middle market businesses panicking if this is the case? Largely, because the Index of Leading Economic Indicators believes even a mild to medium recession would be manageable given the stable economy and consumer confidence occurring. For those who are near retirement or thinking of switching to a new line of work or industry, it means that you may be able to avoid some stress you don’t need to put yourself through. That’s why many are saying selling is going to be growingly popular in the next year or two.
If selling is on the table but you’re not sure where to start, sellers can prepare their companies by shoring up their business as best as possible now. That means identifying any blemishes in your business before a buyer finds it themselves. That gives you the ability to bring it to the table rather than appear as if you are trying to deceive buyers, something that never goes well no matter how interested they are.
Two major things to keep in mind as you go to sell your business are the valuation of their business and a benchmark study. A valuation conducted by an independent firm ensures that you are not going to overprice or underprice your business when you take it to market. On the other hand, a benchmarking study can help you find how you stack up against competitors in the industry. A comprehensive benchmarking study can focus on some of those blemishes you want to be aware of. Both of these are possible through financial services firms like SA Capital Partners to ensure a smooth selling process.
SA Capital Partners is a full-fledged financial services firm for the lower middle market. Corporate consulting only happens after their team understands what you want out of this relationship and helps to build trust and knowledge before diving into the solutions that are needed to get you to where you want to be.
About SA Capital Partners:
SA Capital Partners is an innovative financial services firm that specializes in mergers & acquisitions advisory and capital raising for lower middle market businesses. We aspire to give all the tools necessary to complete any transaction. SA Capital Partner’s financial services industry specialists provide comprehensive, integrated solutions to banking transactions. Our breadth of services and industry knowledge allow us to understand each client’s unique business needs. Our goal is to make all financial services available to every small business.