Is Selling Your Business Part of Your 2022 Outlook?
As one-year transitions to another, savvy business owners conduct annual, in-depth analyses of their company’s performance, carefully identifying strengths and weaknesses as well as evaluating trends and their position in the market. Assessing last year’s details not only reveals crucial insights into the outlook for the next year, but it can also illuminate your business’s true value.
Such knowledge is always powerful, but it grows even mightier in times of uncertainty. After a tumultuous 2021—a year marked by a once-in-a-century global pandemic that’s still transforming how the world does business, alarming inflation rates, political and policy insecurity over everything from increased interest rate to tax hikes, muddled monetary policies, and a new geopolitical crisis almost every week—business owners have reprioritized. And with more entrepreneurs choosing to focus on their home life rather than their work life, in 2022, many are looking to sell.
Indeed, key findings from the recent Goldman Sachs “Outlook 2022” report along with results from the Clarfeld Citizens Private Wealth “Success and Succession” survey of wealthy business owners (those with a net worth of at least $2 million and $5 million or more in investable assets) demonstrate that conditions are freshly ripe for well-positioned entrepreneurs interested in selling their companies.
The reasons behind this shift in attitudes are well-articulated in the Goldman Sachs Investment Strategy Group’s assessment of “Outlook 2022,” which found that in addition to some relatively positive forecasts—such as only a 10% likelihood of a recession and expected above-trend economic growth—copious risks lie ahead. The group anticipates businesses nationwide will contend with surging cyberattacks, a tightening Federal Reserve, increased inflation, and the potential ramifications of escalating geopolitical friction in places like Russia and Iran, but the greatest threat to business will likely remain COVID-19.
Two-thirds (66%) of respondents to the Clarfeld survey said the pandemic spurred them to accelerate plans to retire or sell their companies, often indicating a virus-induced shift in priorities. Nowadays, spending their time with family and engaging in personal pursuits seems more valuable than working and operating a business, and the vast majority (88%) are planning to leave the business to family members. If this sounds familiar, consider contacting a broker to guide you through what can be an arduous process. You can find a free, confidential valuation here.
Of course, even if you’re not exceptionally wealthy, a record of success could mean you’re already positioned to sell today, but many business owners discover they have a bit more planning or polishing to do before making their exit. If selling your business is within your personal outlook, the sooner you develop an informed sales plan, the faster you can transition into retirement.
Knowing the true value of your business is actually your first move towards an empowered future. Your initial valuation will also serve as a benchmark to know if it’s truly time to plan your exit. Let our team help you manage the details and the busywork, so you can focus on what's important to you: your life, and your business.
Are you a business owner looking for a little guidance, insights, and hard-won advice from fellow entrepreneurs? Follow our weekly events, where we host webinars, coaching events, how-tos, and more, every Tuesday at Noon MST.