Is the Market Still Strong Despite the Interest Rates & Tentative Economy?

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Q: Interest rates are up, we’re in a tentative economy, and heading into an election year- is the market still strong? 

JT says: Since 2007 I’ve specialized nationally in restoration companies.  Over these 16 years there’s been a recession, 4 elections and a pandemic.  The industry has remained strong through it all.   

Currently however, elevated interest rates have taken a real toll on businesses below the SBA threshold of $5M in Value.  (Many buyers simply aren’t willing to pay variable rates currently reaching 10.5%.)  

Businesses from $6M – $100M in value, ideal targets for industry strategics and Private Equity, have not been affected.  In fact, as the supply of privately held independents begin to diminish, both prices and multiples are climbing.  Buyers in this range are still very hungry.  

The timing of a sale is often very personal to you and your family, rarely should it be dictated by external events.  If curious, receiving answers early will help ensure your best possible future, exit and timing.  

Get Answers + Get Prepared = Get Retired


Have a question for JT? Don’t worry, all questions will remain anonymous! You can email JT at jt@exitstrategies360.com.

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JT Kraai

As CEO and Founder of Exit Strategies 360, JT takes extreme pride in helping business owners prepare and navigate the business sales process.  As an M&A Advisor, Broker and Consultant for 20+ years, he has structured hundreds of transactions for virtually any scenario, keenly understanding the needs of both buyers and sellers. 

JT indicates, “Most business owners are unaware of their options when it comes to preparing and selling their business.  These options can increase cash and decrease taxes by hundreds of thousands of dollars.  An educated decision is always the best.”

He then adds, “An owner’s weakest link is fear… without knowing how to proceed, they don’t.  We offer the tools, process and roadmap to proceed with confidence.”  

With over 25+ years of entrepreneurial ventures including five start-ups/sales, he has a solid understanding of what it takes to successfully create, expand and maximize business values. JT instinctively has the expertise and capacity to think about critical factors affecting the success of a transaction, providing an extremely valuable perspective and advantage for his clients.  

According to JT, “You’ll probably do this only once in your life… let’s do it right.”

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