Business Sales: What is this new normal? Is the bull market for privately held companies over?

Well at least for 2022, 2023 and maybe shortly beyond; Quantitative easing, a new emphasis among corporate clients on Environmental, Social, and Governance versus purely profit, tax uncertainty, supply chain interruptions, inflation, fuel problems, the largest European war in 70 years, did I mention the highest inflation in 40 years. This ain’t the market we enjoyed in the past 5 years.

But buyers aren’t buying it. They’re clinging to what they know… targets with volatile performance can and should be avoided, plenty of good companies will always be available with consistent track records over the last three to five years, and every dip is an error that either could have been avoided or a sign of the company’s downward trend.

Business Sales: What is this new normal?

Business Sales: What is this new normal? This is the new reality, and because every business has experienced it, it should have no real effect on the value of businesses. Yes, that’s right; hiccups alone is not affecting valuation. The law of supply and demand sets valuation. As long as sellers are not rushing for the door, private equity retains record levels of dry powder, many larger businesses enjoy strong cash positions, and the government stays largely out of the picture the frequency and value of deals will continue as before.

The Eastern North Carolina (NC) office provides intermediary services in Greenville, Fayetteville, Wilmington, Jacksonville, Rocky Mount, New Bern, Wilson, Washington, Elizabeth City, Nags Head, Kill Devil Hills, Duck, Kinston, Goldsboro, Havelock, Lumberton, Tarboro, and surrounding areas.

About Us
Providing business owners of large main street and the lower middle market sized businesses (between $1 million and $25 million in revenue) with creative, value-maximizing solutions for exiting their businesses. To date, Murphy Business Services has handled engagements in excess of $2.1B across various industries in North America. With decades of M&A experience, Murphy Business’ Eastern North Carolina deal team have assisted owners with achieving their personal objectives. Our Business Intermediary and M&A experts can help you figure out if you are ready to sell your business, create an exit or succession plan, and find the right buyer. We look forward to starting the conversation about the possibilities that your future holds.

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