Warning Bells – Time To Sell?

One of the key metrics that business owners and executives should think about when contemplating the sale of their company is prevailing M&A market conditions.  A buoyant M&A market attracts a larger number of buyers, thereby increasing valuation multiples for the seller.  By the same token, declining M&A market activity generally suggests fewer buyers and lower multiples.  In this regard, data on the sale of U.S. mid-market companies is showing a decidedly downward trend.  The downward trend is also noticeable in Canada.  Meanwhile, private equity firms are taking the opportunity to exit now.  Finally, recent and potential tax changes could prove very burdensome for business owners.  Could these be warning signs that now is the time to sell?