We project continued increases in activity in the current year. The fact that transitional activity is largely seller driven, our aging population, particularly an increase in baby boomers reaching retirement age, indicates more businesses will be available for sale. One of the nation's largest accounting firms projects that close to 70% of small to mid-size businesses plan to sell within the next ten years.
CBI currently represents some very successful businesses, and these are generating a significant level of activity. Demand for businesses is strong. Equity groups are aggressively seeking larger manufacturing and distribution businesses. Existing companies recognize that the best opportunity for growth in "a limited" growth economy, is through acquisition. And inquiries for opportunities from individuals or couples remain strong. CBI's greatest challenge remains on the supply side of the equation - there are plenty of qualified prospects seeking successful businesses, but the supply is always limited. These supply and demand factors along with low borrowing rates, and continued beneficial rates on capital gains indicate that those selling their business should do very well.
No comments:
Post a Comment