Growth

Rich and Co.

M+A and Obama’s Reelection – Next 6 Months are Important

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With the high likelihood of Obama’s reelection and doubts about Republican control of the Senate, business sellers are anticipating higher taxes and more difficulties in successfully completing a liquidity transaction.

In addition, buyers are more open, well funded and motivated than they have been since ’06.

So now is a good time to be either a buyer or seller.  The next six months are the critical period as end of year projects and early ’13 projects are now a priority.

We represent both buyers and sellers and are finding the recent transactions are very solid, fair and profitable.   One problem however, is that many sellers are  undervaluing their businesses.

This is counter most intuitions and common wisdom which proposes business owners hold inflated valuations.  We have seen as much the opposite.

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Written by Rich and Co.

October 2, 2012 at 7:49 pm

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