Home : Springfield Area Business News : Optimism Soars for Business Sales in 2017

Optimism Soars for Business Sales in 2017

3/1/2017

Optimism Soars for Business Sales in 2017

According To The Market Pulse Quarterly Report (Springfield, MO)  March 1, 2017 - Nearly three-quarters (74 percent) of business brokers—professionals who aid in the buying and selling of businesses—expect an increase in new clients coming to market in 2017, according to the quarterly Market Pulse Report published by the International Business Brokers Association (IBBA), M&A Source and the Pepperdine Private Capital Market Project.

Compared to one year ago, brokers are feeling an increased sense of optimism regarding closing rates, business exit opportunities and business conditions. When asked at the end of 2016 about their outlook for 2017, three-quarters of respondents said they expected a net increase in new deals, compared to 60 percent who expressed optimism for 2016.

“Small business optimism is on the rise following the election,” said Gary Rogers, CBI & M&AMI, Kingsley Group, Springfield, MO, member of IBBA & M&A Source. “If President Trump is successful in fulfilling his campaign pledges to lower taxes and create a more business-friendly climate, we should see increased activity in the market. If the corporate tax rate drops from 35 percent to 15 percent, as he has proposed, businesses will have more capital to push into expansion and acquisition.”

The number one reason sellers go to market consistently remains retirement. In Q4 2016, respondents were asked for the first time how many of their clients had planned for a business sale. Responses showed that fewer than half (43 percent) had an intentional, proactive exit strategy.

“We are seeing that many retirement sales are rushed, rather than thoughtful, planned events,” said Lou Vescio, CBI, M&AMI, Principal, Coastal Business Intermediaries, Inc., IBBA Chair. “My concern is that business owners who do not plan ahead for their retirement typically get a much lower value because they decide to quickly sell their business due to high emotion, pressure or burnout.”

The Market Pulse Report compares conditions for businesses being sold on Main Street (values of $0-$2MM) to those being sold in the Lower Middle Market (values of $2-$50MM). The Q4 2016 survey was completed January 1- January 15, 2017 by 350 business brokers and M&A advisors, representing 39 states.

About International Business Brokers Association (IBBA) and the M&A Source

Founded in 1983, IBBA is the largest non-profit association specifically formed to meet the needs of people and firms engaged in various aspects of business brokerage and mergers and acquisitions. The IBBA is a trade association of business brokers providing education, conferences, professional designations, and networking opportunities. For more information about IBBA, visit the website at www.ibba.org or follow the IBBA on Facebook, Twitter, and LinkedIn.

Founded in 1991, The M&A Source promotes professional development of merger and acquisition professionals so that they may better serve their clients’ needs, and maximize public awareness of professional intermediary services available for middle market merger and acquisition transactions. For more information about the M&A Source visit www.masource.org, or follow The M&A Source on Facebook, LinkedIn, or Twitter.

About the Pepperdine Graziadio School of Business and Management

A leader in cultivating entrepreneurialism and digital innovation, Pepperdine Graziadio School of Business and Management focuses on the real-world application of MBA-level business concepts. The Graziadio School provides a student-focused, globally oriented education through part-time, full-time, and executive MBA programs at five Southern California locations and at Silicon Valley and Santa Barbara campuses, as well as through online and hybrid formats. In addition, the Graziadio School offers a variety of master of science programs, a bachelor of science in management degree-completion program, and the Presidents and Key Executives MBA, as well as executive education certificate programs. Follow the Graziadio School on Facebook, Twitter at @GraziadioSchool, Instagram, and LinkedIn. 

About Kingsley Group

Kingsley Group has been the small business merger and acquisition specialist in Southwest Missouri for 35 years. They represent clients in their search to sell and acquire companies. Assisting in valuation, defining marketing strategy, financing, and closing each deal are all steps in Kingsley’s processes while always keeping the transaction details confidential. Kingsley Group’s brokers are all uniquely qualified to assist their clients in planning exit strategies and the eventual sale of the business.  More information on Kingsley Group can be found at www.kingsleybrokers.com.

 

Contacts:        

Gary Rogers, CBI, M&AMI               

Owner – Kingsley Group                   

Member IBBA / M&A Source                        

(417) 889-9400                                  

gary@kingsg.com                             

 

www.kingsleybrokers.com                 

 

 

Featured Listings

This restaurant has a long history of strong performance.  For 7 years it operated as a restaurant and lounge, specializing in a variety of wines and cocktails, sushi, and other various cooked foods.  2016 had very low performance due to key employee turnover, other business interests of the owners, and rebranding to what it is now.  2017 is on track to perform much better than 2016.  With a strong active owner in place this restaurant could once again be the cash cow that it was for the Sellers.  The owners are committed to a smooth transition of ownership.

This long established independent manufacturing company specializes in the production of products used in the building construction Industry for both residential and commercial projects.  The product is primarily sold via “Distributors”.  The value of the Inventory will be in addition to the Purchase price.

The purchase of the Real Estate is “Optional”, or as an alternative, a long term lease of $4,000/month NNN.

This is a well‐established business that has been in the same location for 12 years. This retailer has a steady flow of recurring revenue from nearly 2,500 customers who have set up phone plans through them. One nice part about this business is that there is a good potential to grow the recurring revenue side by promoting the 'no contract' major carrier plans they offer. They keep a percentage roughly 10% of monthly bill payments. The other side of the business is cell phone and accessories retail. The owner keeps a stocked inventory and purchases his phones through suppliers in bulk. He has relationships with suppliers that allow him to pick up gently used or refurbished phones in bulk at a discount which generates and attractive return on money invested. The owner has other business interests he would like to pursue and is committed to a smooth transition of ownership.

Newly offered! High Profile full service salon located in high traffic area of SW Missouri. Established 10+ yrs. The salon has strong revenue and discretionary earnings. The owners have kept pace with industry trends and feature a stunning new build‐out with all the luxury appointments. This business comes complete with an envious, award winning talented team (including management) with an established loyal clientele which will remain. Services include hair, nails, pedicure, make up and high end retail.

 

Resources

Demographic and Statistical Profile as published quarterly by the Springfield Area Chamber of Commerce - Springfield Business Development Corporation

The Small Business and Technology Development Center at Missouri State University specializes in providing one-on-one consulting that is comprehensive and individualized to meet the particular needs of business owners and entrepreneurs.  
Continue to the SBTDC Website.

Kingsley Group is committed to maintaining the confidentiality of each client's business information. We will request specific background information from you regarding financial and operating capabilities.

IBBA M & A Source Springfield Chamber of Commerce
About Us | Contact Us | Privacy Policy | Site map | Disclaimer
Site Design, CMS and Development: FletcherGrant.com, Graphic Design: ChristianSoulliere.com