If you own your own business, you’re among an elite handful of people who have made their entrepreneurial dreams come true. Though a significant number of Americans dream of starting their own companies, only about 10 percent have actually taken that leap and followed through with their plans. Of course, plans change, and dreams evolve. Maybe you feel like the time has come to sell your business and explore other opportunities. If so, 2021 may just be the perfect year to do so.

Getting Expert Help with Selling Your Business

Selling a business isn’t a fast or simple matter. It takes numerous steps even before placing the business on the market. You’ll need to have a business valuation performed to determine how much it’s worth.  Please be aware, if you own the real estate, the real estate is a separate transaction.  Businesses, however, are valued on cash flows. You’ll also have to get all your financial documents and affairs in order.  We, as business brokers, will create a Confidential Information Memorandum (CIM), highlighting future potential in the business, among other essential aspects.

Once the business finally reaches the market, your business broker will face a long list of challenges when dealing with possible buyers, such as negotiating prices, discussing potential problems buyers might foresee, and weeding out unqualified leads. Even after all that, only about 20 percent of businesses that are placed on the market actually sell, most of which are represented by a business broker.

Partnering with a business broker can greatly reduce the stress and hassles involved in selling your business. Here at CGK Business Sales, we’ve helped numerous Austin entrepreneurs find qualified buyers for their businesses. We’ll use our experience and expertise to increase your chances of selling and getting your asking price. We have an extensive list of buyers on hand both locally and nationally as well as a long list of additional prospects, all of whom could be the ideal buyer for your company.  We sell 90%+ of our engagements.

Why 2021 Is a Great Year to Sell Your Business

Few people would argue that 2020 was a particularly unusual year. Obviously, the pandemic brought about changes most of us never would’ve imagined experiencing in our lifetimes. Though COVID-19 dominated the headlines, it wasn’t the only event to take shape over the course of the year.

Brexit reached a new phase in its ongoing development, and the world suddenly and unexpectedly lost Kobe Bryant in a helicopter crash. On top of all that, people across the globe watched from the edge of their seats as America’s 2020 election meandered through all its twists and turns. Companies in all industries and market niches also saw their fair share of ups and downs, and those evolutions have made 2021 a great time to sell a business for many reasons.

Favorable Market Conditions

One of the main reasons 2021 could be an excellent year to sell your business is the state of the mergers and acquisitions market. It’s a seller’s market right now because more people are looking to purchase businesses than planning to sell them. At the same time, Austin’s business environment and real estate market has been deemed the hottest in the country at this point according to a recent write-up.

Austin is quickly becoming the go-to spot for businesses, and quite a few people are looking to get in on the action. For many, that means purchasing a business that already exists and placing their own unique spin on it. Numerous prospects are also looking at the matter from an entrepreneurial investment point of view because they fully understand all the potential profits to be gained.

Possible Tax Changes

Proposed changes in capital gains taxes for business sales also stand to impact entrepreneurs after this year. If you sell your business during 2021, you’ll be looking at a capital gains rate of about 20 percent. In the event the Biden administration follows through with its proposed plans, that rate will almost double during the years to come for high earners.

Even if the higher tax rates were to come to pass today, though, there’s a decent chance they won’t kick in until 2022 at the earliest, despite recent rhetoric. Selling now could save you a great deal of money when you file your taxes next April. That’s money you could use for any number of other ventures, like delving them into a new business or extending early retirement plans.

A Wealth of Opportunities

Numerous business owners are planning to sell in the immediate future. Some found themselves floundering in the wake of the pandemic. Others have simply made their money and are looking to take life a little easier moving forward. Regardless of the reasons they’re selling, they’re creating a vast range of opportunities for people who are looking to buy a business.

If you’re selling your businesses because you want to explore new entrepreneurial paths, 2021 holds plenty of opportunities in store. You could place the profits from selling your current company into purchasing an entirely new one in a different industry. Transform that business and make it your own. With the economy rebounding from pandemic-related hardships, there’s no limit to the success you might see.

Getting Out While You’re Ahead

Countless businesses fell into unprecedented times of hardship because of the pandemic. Some lost millions of dollars in potential sales due to social distancing, shelter-in-place orders, mandatory curfews, and other restrictions. On the other end of the spectrum, some businesses saw new opportunities in the glittering in the rubble and profited from them.

If your company falls into either of those categories, selling now might be a good choice. Perhaps you’re among the many who struggled just to make it through last year, and you just want to cut your losses. Maybe you seized an unexpected opportunity in the face of the adversity and came out on top, but you’d like to get out while you’re ahead. Either way, 2021 is giving you a unique range of possibilities.

Taking Advantage of the Latest Opportunities

Many business owners are thinking of selling their Austin businesses right now. As fate would have it, 2021 has brought about favorable market conditions, potential tax breaks, and a number of other opportunities. You can certainly take advantage of the circumstances, but doing so could be exceptionally difficult if you go it alone. Fortunately, you don’t have to shoulder all the burdens on your own. We’re here to help you overcome the hurdles involved in selling a business and get the most out of the experience.