A number of factors, including record-high 2017 M&A activity and the passage of tax reform legislation, indicate that 2018 will be an excellent year for business owners to move forward with transitioning out of their businesses. If you’re a business owner who is thinking about selling or transferring your business to someone else within the next few years, the time to start preparing is now!


Increased 2017 Q3 M&A Activity

2017 is on track to set a record for the highest number of businesses changing hands since 2007, according to BizBuySell.com's Third Quarter 2017 Insight Report. And, there was an increase in M&A activity by private equity and strategic corporate buyers in Q3 of 2017 compared to Q2, according to the Q3 2017 Market Pulse Report published by the International Business Brokers Association (IBBA), M&A Source, and the Pepperdine Private Capital Market Project. The report attributes the increased activity largely to the strong demand for add-on acquisitions.

Approximately 55% of business brokers and advisors who were surveyed as part of the Q3 2017 Market Pulse Report expect the shrinking labor market will cause more business owners to expand through acquisition. In Q3, around 90% of deals in the $5MM-$50MM range were acquisition or add-on growth opportunities, compared to 60% in Q2 2017.

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