OWNERS
SAY DESIRE FOR LIQUIDITY TOP REASON TO SELL BUSINESS NOW
Minneapolis, Minnesota, -- The desire to convert the assets of their businesses
to cash is the most-mentioned motive for selling now, according to a new
survey of 1,418 American closely held business owners.
Record-breaking
activity in the mergers-and-acquisitions marketplace ranked second among
the factors cited as motivating sellers to now begin the selling process,
according to the Venture Business Groups Index, a nationwide survey of relevant
issues of the day conducted regularly among owners of private, middle-market
businesses with enterprise values up to $150-million."
Private business owners are capitalizing on today's seller's market by taking
advantage of this temporary window of opportunity to liquefy some or all
of the assets tied up in their companies," says Mr. Sajady, President
of The Venture Business Groups, a national mergers-and-acquisitions firm
based in Minneapolis, Minnesota.
"These business owners are correct in recognizing that values are enhanced
substantially when the M&A marketplace is active and when there is competition
among buyers for middle-market private companies. The unknown factor, of
course, is how long this record-setting M&A pace will continue. Like
the economy, the M&A marketplace is highly cyclical," Mr. Sajady
cautions.
Here, in rank order, are the most-mentioned reasons for business owners
selling now, according to the Venture Business Groups Index.
- Desire
for liquidity
- Current
Active M&A Marketplace
- Enter
another Venture
- Burnout
- Age
- Family
Issues
- Boredom
- Partnership
Issues
- Health
Mr. Sajady adds,
"Interestingly, these primary motivations for the decision to sell
are essentially the same, year after year. However, the main differences
in rankings revealed in this Venture Business Groups Index reflect the owners'
keen awareness of both the current seller's market, as well as the new reduction
in the capital gains tax rate."
Mr. Sajady advises, "While short-term prospects remain promising for
the sale of private businesses, the buyers, motives, and structure of many
transactions could be dramatically affected by changes in the economy, financial
markets and tax legislation."
Mr. Sajady also suggests, "Business owners planning to sell, or those
even considering the option, should take the necessary steps now to start
the selling process in order to obtain maximum value for their companies.
The selling process can take anywhere from 6 to 18 months to complete (on
average one year), depending on the complexity of the transaction."
Now in its 16th year, Venture Business Groups assists the owners of private,
middle-market businesses in evaluating, building and selling their companies
at the appropriate time and for maximum proceeds.
For
More Information Contact:
Corporate Communications
Venture Business Group, Inc.
601 Carlson Center
Suite 1050
Minnetonka, Minnesota 55305
Tel: (952) 449-5247
e-fax: (763) 559-7998
merger@vbgi.net