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Why Now Is the Best Time to Sell Your Business in Raleigh, NC

If you’re a business owner in Raleigh and are considering selling your business this year or the next, 2018 is a great time to get started. While there are many reasons for wanting to sell, the current economic climate has created plenty of opportunity for buyers and sellers in the Raleigh, NC, area. The city was recently ranked second on a list of America’s best-performing cities due to its healthy economy. Many motivated buyers in the Triangle area are ready to invest in or purchase businesses in many industries, including technology and hospitality.

Reasons for an Exit Strategy

Finding yourself in the position of wanting to sell your business can happen for a number of reasons, some of which may depend on your individual situation and business type. Some common reasons for wanting to sell include:

  • Retirement
  • Dissolution of a business partnership
  • Personal relocation
  • Health reasons
  • Feeling burned out
  • New opportunities elsewhere
  • Business type is in demand for the area

Importance of Preparation When Selling

One North Carolina couple who were former owners of the Cary Cafe in Cary, which is about a 20 minute drive west of Raleigh, successfully sold their business in 2015 after 18 years of ownership. They decided to make the transition because they wanted to focus more on their side catering business.

The couple kept strong financials through the years —a huge benefit when it came time to sell — poured over profit and loss statements and gathered all the necessary documentation in order to sell their business. They also spent quite a bit of time auditing several qualified buyers before making a final decision. Taking the time to prepare for the cafe’s eventual sale helped ensure they were passing on the business to capable hands, but you don’t have to do all the work yourself. A qualified broker at LINK can help you prepare for a successful sell and save you a lot of time and hassle. This will enable you to focus on running your business while your business broker focuses on the sale of your business.

A Healthy Economy

According to the Financial Times, the US economy is currently quite healthy. In Q4 of 2017, the GDP experienced 2.6 percent growth, and the job market continues to be robust. The recent Republican tax plan has benefited many large businesses with significant tax breaks — under the plan, the corporate tax rate was slashed from 35 percent to 21 percent — which has helped put more money in employees’ pockets.

A strong economy coupled with a successful business creates an optimal environment for selling. Many business owners make the mistake of selling when the business is struggling just to get out of it, but the smarter thing to do is sell while you’re on top, so you can benefit from a higher price.

One result of an economic upswing is that buyer optimism is currently high, creating an ideal climate for selling. It means there are many available buyers ready to purchase your business, regardless of the industry.

Positive Credit Market

Financial experts’ current thinking is that credit markets are currently strong and will be an area to watch as 2018 progresses. That strength means buyers are more likely to be successful in obtaining SBA loans for purchasing a business.

In fact, Huntington Bank, the second largest originator of small business loans, has seen a substantial spike in small business loans so far in 2018. Secure financial backing provides a safety net for eager buyers looking to purchase small businesses.

Retiring Baby Boomers

Baby boomers, individuals born between 1946 and 1964, are retiring in droves. In July 2017, experts estimated that 10,000 baby boomers were retiring each day. With numbers like that, there will certainly be a host of small businesses going on the market for sale in the coming months and years, and buyers will be ready to take advantage of them.

If you think you may be ready to take the leap and sell your business in the Raleigh/Triangle Park area, give our team of business brokers at LINK Raleigh a call. We look forward to working with you to help you successfully sell your business.