From Due Media:



The article discusses the impact of high-interest rates on the market for companies being sold and raising money at soaring valuations. The higher rate environment has created headwinds in capital markets, impacting venture funding, lending, and mergers and acquisitions. However, small businesses, particularly in the lower middle market, have been thriving despite the slowdown in larger corporate deals. Smaller companies are agile and able to adapt more quickly to economic conditions, making them more resilient. Additionally, larger institutional buyers, such as private equity funds, are increasingly focusing on acquiring small companies in recession-resistant niches. The article also emphasizes the importance of transparent and accurate financial record-keeping when selling a business, as murky bookkeeping can often derail or even delay deals. Prospective sellers of smaller businesses are advised to integrate GAAP and commit to rigorous proactive self-auditing to ensure financial accuracy. The article also provides tips for successfully selling a business, including understanding business valuation, enhancing business appeal, seeking professional advice, maintaining confidentiality, marketing effectively, being ready for due diligence, negotiating strategically, planning for post-sale transition, and considering one’s own future. Overall, the article suggests that despite the challenges posed by high-interest rates, there are still opportunities for small businesses to thrive in the market for selling companies.



Original: 4 Considerations to Make Before Selling Your Company in This Economy