Markets are not always easy to read. Very often multiple factors make for a maelstrom of competing voices with differing advice. The Johnson Consulting Group’s Funeral and Cemetery Business Broker Team has identified some important factors at play right now to help you make sense of the chaos.
Since the COVID-19 pandemic began, it has wreaked havoc on our lives and livelihoods, creating unprecedented conditions in the stock market, food production, the housing market, the medical establishment—and the funeral business.
Now that we’ve moved into the next stage of the pandemic—containment—you may be wondering if this is a good time to sell your business. Right in line with our Go or Grow philosophy, here are our top reasons that this is a sellers’ market, and it’s time for you to sell NOW if it’s on the horizon for you in the near future.
- Capital Gains rates are likely to increase under the new administration. What does this mean for you as a seller? If you are considering selling or planning for it in the next few years, you may want the ink to dry before rates increase and you receive less of your hard earned equity. Additional considerations effect your sale’s decision, such as whether your business is a sole proprietorship or if you’re selling a partnership interest. (Our experts can help you weigh those considerations.)
- A high case count year in the books with a continued upward trend looks lucrative. Selling when you’ve had an increase in call volume shows value for your business when you are at the table! Last year, and likely 2021, are high case count years that are predicted to taper off in the coming years. One consideration is if the high case count now means a lower case count in the next few years. So, you can sell now to maintain that high case count.
- Business values are high. The market is active and multiples are good right now. Right now is lucrative time for you to sell your single- or multiple-location business to a business in a growth phase.
Just because the market is ready doesn’t mean you are. Even though the market is ripe, it may not be time for you personally to sell your business. But, it’s never too early to plan your exit strategy, and we can help you lay the groundwork for top results. We can help you review your EBITDA (Earnings Before Interest Taxes Depreciation and Amortization) and see where you are wand what you can do to get the most value from your business.
Need more information or ready to sell? Contact the JCG team today!