Tampa, FL, February 17, 2018 --(PR.com
)-- Why Engaging in 2018 is Advantageous for Business Owners: As 2018 moves forward, it is important to acknowledge the advantages of engaging a business for sale. Mergers and acquisitions was strong in 2017 and is expected to continue full steam ahead moving into 2018. Benchmark International stays on top of current trends to bring business owners the highest level of professionalism in the sale of their companies.
Corporate and private equity executives foresee an acceleration of merger and acquisition (M&A) activity in 2018, both in the number of deals and the size of the transactions. Right now, sellers have the opportunity to take advantage of the M&A cycle as deal scarcity, a depleted stock of quality companies available for sale in the market, is still forcing buyers to pay more for businesses.
Now is the time for entrepreneurs to move quickly and ensure their future objectives because the M&A cycle is solidly in its growth phase. The demand for quality companies is at its peak. Benchmark International predicts high multiples on EBITDA to continue trending in 2018. So, sellers will want to have an exit strategy in hand that allows them to sell their companies on their terms. In order to do this, business owners need to evaluate upcoming changes in the M&A cycle and use these evaluations to make smart decisions for the future of their businesses.
Timing is of the essence. According to Goldman Sach's, the unemployment rate is predicted to drop to 3.7 percent by the end of 2018, with a hike in interest rates to follow. Higher interest rates will force buyers to drive tougher negotiations with business owners looking to sell. Now is the time to get the ball rolling on the acquisition process. Owners can beat these higher rates and lock in the deal they seek. Benchmark International is the partner to assist companies from start to finish and make sure the expectations are met.
Bloomberg reports “the U.S. economy is heading into 2018 with strong momentum that’s likely to boost wages and inflation more broadly, requiring the federal reserve to raise interest rates four times next year.” These interest rates are expected to continue rising in the coming years, so now is the time to snag a desirable negotiation for the sale of a business. As the M&A cycle comes to its peak, Benchmark International is here to obtain the best offer for businesses.
According to CNN, there are approximately 75 million baby boomers, aged 53 to 71, who are entering into retirement. With this generation coming into retirement, there will be more businesses for sale, which will provide buyers with more purchasing power. This will cause a change in supply and demand, and likely drive prices of companies down. If an owner is considering selling a business in the next three to five years, the time to act is now.
2018 is the year to earn exceptional deals in mergers and acquisitions. Businesses need to be ahead of the crowds and make the decision to commit to a merger and acquisition engagement, so they can stand firmly on their expectations and get the best possible outcome for the sale of their businesses. With Benchmark International’s help, sales will be completed at the top of the M&A cycle.
Mergers and acquisitions can take several months, and in some cases as long as a couple years. So, competitive offers should be locked in now. 2018 is expected to be another successful year for M&A. Don’t let it pass by and miss out on the high multiples and buyer competition witnessed this year. Benchmark International sets the standard and shows owners what experts can do for them. The time to engage is now.