BUSINESS CONSOLIDATION IS HERE
Consolidation: is it right for you? We’re seeing it more and more, and here’s what our recent experience has been with it. We’re hoping it will give you some important insight into whether it’s a good option for you.
OUR RECOMMENDATIONS:
- CONSIDER THE ECONOMY AND HOW IT AFFECTS YOU: As a business, you have no control over financing rates, unfortunately, and they are weighing heavily on our clients, where finance rates are a consideration in closing a sale.
- FINANCE RATES ARE NOT GOING LOWER ANY TIME SOON: Even though the Fed has lowered its rate 3 times in the last 6 months, interest rates have not budged. In fact, they’ve even gone higher. Mortgage rates have even moved into the 7% range as of this writing!
- FINANCING RATES WILL STAY IN THE CURRENT RANGE ALL OF 2025: According to the experts, the interest rate on bonds remains high, and this sets the cost of borrowing. Historically, these rates are not historically high but tell that to today’s buyers.
- GIVEN THIS BUSINESS, SENARIO, WHAT’S BEST FOR YOU? We are seeing some businesses selling, and if you are a buyer, how you market your new acquisition going forward will be of the utmost importance.
- KEEP YOUR GOOGLE REAL ESTATE: This may sound silly given all of the pressing matters you face, but it’s huge. Now, you have two sales funnels to bring you business. You must capitalize on it.
- CONSOLIDATION WORKS: Three of our established clients have bought other companies in the past 6 months, and all with glowing results. We’ve helped them navigate the marketing challenges, and all are building nicely on their investments.
If you are thinking of selling, besides individual firms, there is quite a bit of private equity activity out there. We are familiar with their tactics and would be happy to discuss the pros and cons with you.
Onward & Upward!
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