Bill Grunau has been an Orange County business broker for over 20 years and as the founder of Pacific Business Sales. Recently, he did an informative podcast with Mark Imperial of the Business Innovators Magazine. As part of the magazine’s series called “Spotlight,” Mark holds powerful conversations with industries and community leaders to inform the public about current business trends.
During their conversation, Mark and Bill covered the topic of “The Great Resignation” which has been highlighted in the news since the pandemic. This event created a shift in the labor force resulting in higher-than-normal quit rates in the United States. As more people restructure their careers, today is a remarkable time to sell or buy a business.
As founder of Pacific Business Sales, Bill Grunau has dedicated the last two decades to helping people sell their businesses under the most advantageous terms. He has helped many business owners transition into the next phase of their life when they are ready to pass on their companies to a new owner.
Bill’s organization is a unique Orange County business broker. Unlike most business brokerage firms that focus on mainstream businesses such as restaurants, Pacific Business Sales focuses on industrial companies such as manufacturing, construction, healthcare, e-commerce, and others alike.
Young Entrepreneurs Are Ready To Buy Businesses
Another factor that Bill Grunau mentioned is a new trend seen last year called search funds. It provides funding for young entrepreneurs, usually in their 30s and 40s, to acquire businesses without enough capital. This financing technique is helping more entrepreneurs acquire companies that they would not be able to if not for search funds.
Search funds involve private equity groups or private investors who act as financial backers for talented young entrepreneurs. Bill sees many young search fund buyers acquiring relatively large businesses, often worth more than $10 million. With hundreds of search funds available on the market for eager entrepreneurs, this financing technique is significantly changing the dynamics of buying and selling businesses.
Timing Is Everything
The economic climate and labor trends play a significant role in the mergers and acquisitions (M&A) market. When considering selling a business, timing plays a vital role in the successful outcome that a business owner can expect. This is why choosing when to sell must be a strategic decision that considers current business trends that impact the mergers and acquisitions market.
When the M&A market is hot, that’s when the deal will close more easily and likely for a much higher value. When the M&A market is not favorable, it is very tough to close deals, even at a significant discount.
How To Identify A Good Time To Sell
Similar to the stock market, selling a business is best done during periods of economic expansion. The first step must then know when the business cycle is expanding. When economic development occurs, unemployment rates decrease or are already low. At the same time, there is a rise in personal incomes and corporate sales.
Another opportune time to sell is when consumers spend a higher amount of money and the stock market is up. In an M&A market, the main factor is when the economy is presently expanding – you don’t need to concern yourself with where it is headed as it is tough to predict.
Indeed, selling a business is more successful during an economic expansion. Bill Grunau has acquired experience by staying informed about current business trends throughout the years. We are now seeing economic growth that allows many entrepreneurs to acquire businesses much more easily. Right now is indeed an ideal time to buy and sell a business.
How long will it last? It is hard to make a concise prediction, just as it is with the stock market. When a window of opportunity opens, it is the perfect time to take action. Selling a business is made simple with expert business brokers who know precisely what it takes to close the most beneficial deal.
More About Mark
As a syndicated business columnist and best-selling author, Mark Imperial has hosted several shows highlighting business experts, providing the public with a wealth of knowledge. His podcast is a great place to visit for business advice and learn about current market trends.
Connect With Orange County Business Broker Experts
Pacific Business Sales is a premier business brokerage firm founded by Bill Grunau. He has more than 20 years of experience successfully closing transactions both as asset sales and stock sales, including businesses with licensing. At Pacific Business Sales, our network of financial advisors know the tax strategies to minimize taxes on a business sale. For a consultation or more information on our services, contact us and speak with one of our professionals today.