This week on IHAQ, we welcomed back Erin O’Leary. Erin is a Business Broker for BayState Business Brokers.
We asked Erin a pretty relevant question with today’s uncertain market conditions. What outside factors impact the demand for selling a business?
Erin began by listing a few factors: interest rates, capital gains taxes, and COVID has had a disruptive impact over the past 2 years.
Erin concludes by saying we are still in a seller’s market (at the time of filming a few months ago), as the amount of businesses for sale isn’t keeping up with the demand.
This could all change quickly, but like the housing market, the demand outweighs supply when interest rates are low, and the economy is performing well.
We’re starting to see a sharp reversal of this trend with rising interest rates, so businesses may have missed the most opportune time to go on the open market.