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A Look at 2018 San Diego Sales Trends

Business sales trends tend to follow overall business market indicators, and all of those indicators agree: now is a great time to sell your San Diego-based business. Timing your sale with the right season of the business cycle, when you are most prepared for a transition and after you’ve gone through a measured strategic planning process, can ensure you get top dollar for the company you’ve worked so hard to grow. That means you’ll have the funding necessary to put into a new business opportunity, entrepreneurial adventure or even your retirement.

Current Market Numbers

Looking at the economic market right now, all news seems to be golden. Estimates from the second quarter of 2018 show that the GDP growth rate is increasing at 4.2 percent annually. Growth in the gross domestic product can indicate that other business owners as well as investment groups and private business-minded individuals have experienced progress in their own financials and are well-positioned to purchase a business like your own.

Current interest rates also indicate that it's a good time to sell your business. Although the Fed has increased rates to keep up with the booming economy, it still remains at an attractive 2.25 percent as of September 2018. Once banks use that rate as a basis and calculate their own rates, businesses and professionals looking to acquire another company are in a great position to obtain necessary funding to offset the cash or stock exchanges that will comprise the total acquisition package.

Other great economic indicators that may enable you to position your San Diego company for sale are unemployment and job creation. As of August 2018, the unemployment rate remained at an enviably low 3.9 percent while more than 200 thousand jobs were created in that month. The high percentage of filled roles in companies and new positions being created indicates that businesses have the cash and capital on hand to fuel their growth, which means other companies may have the resources to purchase your business as part of an expansion.

Finally, a statistic to examine when determining the best time to sell your business is inflation. As of fall 2018, inflation in the United States is at 2.7 percent. That means that while the cost of goods and services are a bit higher than a year ago, the rate isn’t increasing at such a prohibitively fast pace to restrict cash flow available for acquisitions. At the same time, the value of your business may continue to experience growth that can lead to higher acquisition prices and more money available to you after the sale has completed.

The economy can change quickly, especially in the face of unforeseen worldwide events. Barring that, all current indicators show that this is a great time in the business market for company owners to successfully position their organizations for sale. Study these economic indicators for yourself to understand more about how they’ll impact when you list your company for sale, the valuation you arrive at for your business and how fast you can expect to move from the strategic process of placing your company for sale and the completion of the actual sale. San Diego and the entirety of the United States is experiencing this current boom together and it may be time for you to strike while the iron is hot to ensure you get top dollar for your sale.

If you want to speak with an experienced broker about selling your business contact LINK San Diego today at (858) 452-3000 or inquiry at