In recent months, the trade war between the US and China is heating up. US stocks are volatile in trading because of the uncertainty in trade growth. According to Amara Omeokwe from The WSJ, “Trade flows are set to grow this year at the weakest pace since the financial crisis.” Tariffs have increased between the two countries and US manufacturing has taken the hardest hit. The manufacturing industry in the US is a leading industry when tracking the economy. Amara went on to explain how the manufacturing index fell to 47.8 in September, the lowest level since June 2009, from 49.1 the prior month. Readings below 50 indicate contraction, while those above signify expansion.
If you’re thinking about exiting your business within the next 5 years, this could be a great opportunity. Multiples on business sales have not dropped yet. Who knows if this will lead to a slowing economy and lower multiples, but we always must be vigilant when thinking about an exit plan. If you have enough steam to weather another storm in the economy, we would encourage you to do so. However, if you’re within a handful of years from planning an exit, now would be a great time to meet with a broker to learn about your options.
THE MOST PREPARED BUSINESS OWNERS ALWAYS KNOW THEIR EXIT OPTIONS
The first step at exploring the idea of selling is figuring out what you can get for your business. What if you can already get what you need? Would you exit? Many business owners would, but they are afraid to find out what their business is worth. It’s a small amount of effort for arguably your biggest asset.