• Brett Pittsenbargar

Top Reasons Why You Should Sell Your Business in 2020

Still not sure if you’re ready to sell your business in 2020? There’s a lot of potential to sell in the coming year but you may not know it yet. If you’re unsure if your business is ready for the market, here are the top reasons why you should sell it in 2020.

It’s the baby boomers’ time to take a step back

Are you one of the excited 12 million baby boomer small business owners ready to retire? A recent survey by Bain & Company reveals that entrepreneurs in this age group are moving into retirement in 2020. The California Association of Business Brokers also found out that a total of $10 trillion worth of businesses by baby boomers are going to change hands in the next decade. There’s never been a greater time for preparing your business for sale this early. Business buyers also love to negotiate with sellers like you because baby boomers are known for their strong work ethic and resourcefulness.

But you’re not ready to give up work yet

Not all baby boomers are looking to retire so soon though. If you belong to the segment of higher-income workers who are more educated, age-related reasons won’t be a factor for putting out the pasture anytime soon. According to another research by Bain & Company, there has been an increase in affluent workers who were born between 1940 and 1960 who are extending their work. However, with only 55 percent of them having enough money saved for retirement, how can they finance their needs during their golden years? For many of these baby boomer entrepreneurs, a good solution is putting their businesses in the market in the hopes of exiting within a few years with enough proceeds from the sale.

In addition, more business startups in the field of services, retail, health and fitness and automotive are getting launched since 2017 by entrepreneurs age 50 and up in California, Florida, New York, North Carolina and Texas. But not everyone can pursue their passion because financing remains a hurdle, especially when the want to transition to a new industry. By selling their businesses, they can start an entrepreneurial venture anew.

Business loans are nearing all-time high levels

The Small Business Association (SBA) loans such as 7(a), 504, and microloans that can be used for funding working capital, inventory and equipment are nearing all-time high levels in 2018 as of the latest data from the office’s mid-August 2019 report. SBA loans are popular for having very low interest rates (with only 7.50% interest for a 7(a) type if paid off in under 7 years). They also have long repayment terms from 10 to 25 years, which make it very convenient for business buyers.

What does this mean for sellers like you? Expect more buyers to scout for businesses and find the best arrangement for structuring the sale — and your business is most likely to be one of them!

Fed interest-rate cut benefits borrowers

The Federal Reserve’s interest rate cut from 2 percent to 2.25 percent in July 2019 is great news for business borrowers. This means that borrowing rates will continue to dip making long-term investments a good option. In other words, with lower rates, more people are encouraged to borrow so more money flows into the economy. Businesses are more than happy to spend and so are consumers. Now that small business loans are made more affordable, prepare for business buyers to be calling for you.

Consumer confidence is sustained at impressive levels

Current consumer confidence in the Untied States reflects strong current business conditions, employment levels and family income. Furthermore, consumers are optimistic about their financial outlook. With robust spending being sustained, keeping your business profitable is positive even with news of a possible recession looming. Furthermore, if your business is Amazon-proof, there’s plenty of opportunities to keep a sizable share of the market. The best time to sell your business, as experts recommend, is when it’s at its peak. This means that when the economy is stronger, it benefits buyers when they get a hold of a profitable business such as yours.

However, it is important to determine a fair and reasonable value for your business before putting it on the market. Most small business owners, however, never think of seeking advice from business strategists to how to proceed wit the transition.

Current small business owners are clueless about determining the fair market value of their enterprise. Likewise, business buyers can’t arrive on a purchase price because they look at the business from a different perspective.

I recommend you to use The Value Builder System, which shows a scorecard that grades business performance in the 8 key drivers of value (financial performance, growth potential, Switzerland structure, valuation teeter totter, annuity-based revenue, competitor differentiation, customer satisfaction and business performance with an absent owner). It only takes 13 minutes to generate your Value Builder Score.

Take the survey here:



Brett Pittsenbargar

is a savvy business investor and turnaround strategist dedicated to assisting business owners reach their objective at every growth phase. With a background in business development and investment experience, Pittsenbargar understands that business is much more than written contracts, it is about the people working every day in the business that matter most for small and medium sized enterprises generating $1-20+ million in revenue annually. He invests in, mergers and acquisitions, growth partnerships, cash out purchases and adding shareholder value.

Consult with a seasoned business investor that has decades of experience helping small and mid-sized businesses. A business strategist who can work directly with you in developing exit strategy plans, partnering growth partnership, building shareholder value and organizing mergers is critical for your business. Contact

Growth Point Holdings today to arrange a one-on-one consultation with a dedicated business strategist to start building a synergistic long-term business relationship together.

Disclaimer: This article is intended to give you general business information, not to provide specific legal or financial advice. Be sure to consult your attorney, accountant, and financial professionals for any specific questions relating to your business.