Transworld Business Advisors - Valuing Your Company
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Is it A Buyer or Seller Market for Selling Your Business?
Is it a Buyer or Seller Market for Selling Your Business? June 16, 2017 by Michael Shea PA Is it a Buyer or Seller Market in Selling Your Business? Not a simple question and reflects some specifics to your particular deal but there are some macro stats you should consider if you are considering selling your business At present the sales price to asking price gap is tight. This reflects low inventory and high demand making it, in essence, a seller’s market. So, if you were looking to sell an environment like this is ideal. The following image accurately reflects the trends we have seen for the several quarters. The next data point is multiple of Cash Flow. Again the tight inventory has driven multiples up once more reflecting a seller’s market dynamic. The term multiple is bandied about and sometimes confuses parties but in general buyers pay a multiple of the cash flow or profits of a business. When it is observed that multiples are going up it reflects a number of