If you are contemplating selling your business in 2021, you are probably wondering whether now is a good time. With a pandemic and recession, many businesses are having trouble.
However, some companies are thriving. Synergy Business Brokers has been selling profitable companies for almost 20 years. Our sales in 2020 were the best they have ever been. Our revenue increased by over 80% compared to 2019. And it looks like things will only improve in 2021.
Many business owners think that now is a bad time to sell. We are finding just the opposite.
Market Conditions are right for selling a successful company in 2021
Buyers are very interested in buying good profitable companies. Many of the industries that we focus on have businesses that are doing very well. These include technology, healthcare, distribution, construction, manufacturing, services, and transportation.
We represent sellers, and our clients have been capitalizing on the favorable market conditions in 2020 and moving into 2021. We recently closed a number of deals with multiple offers.
This allows us to create a favorable bidding situation that maximizes our seller’s price.
When to start the process of selling your business in 2021
If you would like to sell your company in 2021, the time to start the process is now. Although we sell some companies in only a couple of months, on average, it takes 6 to 10 months to sell a business.
You’ll want to fill out our contact form now so we can help you prepare. We can sign a confidentiality agreement so that you can provide us with your financial information and details on your company. Then we can provide you with a free evaluation and proposed selling price.
If you want to move forward with us, there is no fee until your company is sold. Because of this, we only take on clients that have a net income of $200,000 to $5 Million in the industries that we service. We have buyers for these types of companies, and we’re confident in our ability to get offers for companies in these sectors.
Why have market conditions been so favorable to sell a business in 2020 and moving into 2021?
It comes down to supply and demand. Because many business owners think it’s a bad time to sell, they hold off selling their business. So the business owners that do decide to sell a profitable company have less competition in the business sale marketplace.
We have found that there are plenty of buyers for profitable companies. Because many companies are not doing well, businesses that are, stand out, and are very desirable for buyers.
This mirrors the stock market, which has actually done pretty well in 2020 because the growing companies are very desirable for investors. So the market for both public and private companies is in synch with the increase in the value of good companies.
While the market for Business Sales is good, we recognize that many are struggling during this time. Synergy Business Brokers has implemented a corporate giving program, which makes donations to charitable organizations with every deal that we complete. You can read more about the details and our values and principles.
What type of companies did we sell in 2020?
- Technology: It’s no secret that the stocks of tech companies such as Apple and Amazon have been on a tear in 2020. We have also found that private tech companies have been very desirable acquisition targets as well. In all of our tech businesses for sale, there were multiple offers. Here’s an example of some of the deals we have done in technology in 2020:
- Managed Services Provider (MSP) and Internet Services Provider (ISP) in Tennessee. This company was sold in less than 6 months to a private equity group.
- ERP Software Company in Ohio. This business was sold to an individual buyer from the tech industry that used bank financing for the purchase.
- IT Services company in New Jersey. Sold to a private equity group based out of North Carolina that owned multiple tech companies.
- Manufacturing: Despite what many in the news say, Manufacturing companies that we have represented are doing well, and because of this, they demand attention from a lot of potential buyers. Some of the manufacturing companies we have sold in 2020 are:
- Contract Manufacturer of packaging for consumer products, including cosmetics and personal care, located in Pennsylvania. Sold in less than 5 months.
- CNC Machine Shop in Connecticut that manufactures high precision parts made out of Aluminum and Steel. The business was sold in 8 months.
- Construction: Many construction companies had to close down during the pandemic. However, after the pandemic was over, they bounced back with a vengeance. Anyone who tried to get a contractor after the lockdown was lifted knows that there was a much longer wait than usual. Because of this, the demand was still strong for good profitable companies in the construction industry. Two that we sold in 2020 are:
- Electrical Contractor with 70 employees in the Buffalo, NY area. The owner was ready to retire in his 50s. We found a buyer that had recently sold their business and had cash on hand.
- Underground and Aeriel Utility Services Construction for gas, electric, water, and telecom in NYC. This is an essential services company with plenty of demand from multiple buyers.
- Property Management: Through good times and bad, the services of property management companies are always in need. They provide services that include collecting bills, performing maintenance and repairs, tenant leasing, and customer service. We sold two different property management companies in the same week in late March, soon after the pandemic started.
- Environmentally Friendly Companies: Every year, we sell companies in this sector, and 2020 was no different. Of course, Tesla leads the way in this category for public companies. But there are many private companies that are doing very well in a broad category of different types of companies. We have experience selling companies involved in recycling, environmental consulting services, energy-saving products, energy-efficient solutions, and environmentally friendly services.
- Cleaning & Maintenance Products & Services: It’s easy to see how cleaning services were a popular type of company for buyers in 2020. We sold two companies in this segment this year. One was a large company with over 50 employees that distributed janitorial and sanitizing products to businesses, schools, and government customers. The other company we sold provides services for disinfecting, sanitizing, as well as normal cleaning services. They use biodegradable and sustainable products and recycling. They also provided light maintenance repair, including plumbing, carpentry, landscaping, electrical, painting, etc.
- Distribution: In 2020, we sold two distribution companies including a business in the food and beverage distribution industry in New Jersey. These types of consumer staples companies do well in both good and bad economies. People always need to eat and drink, and so this category is seen as recession and pandemic resistant.
- Healthcare: Another recession-resistant category is healthcare. We sold a successful family medical practice in Texas to a data-driven public healthcare company within 7 months of the seller’s first call to us.
- Education: We had an assignment to sell a Museum in New York City when it was closed due to the pandemic. With no real end in sight to when it would be open, we were able to get a buyer that made an attractive offer to auction the artifacts and allow the owner of the museum to maximize their proceeds during what was a difficult time for any museums.
- Engineering: We sold a Civil Engineering & Surveying Company in Western Massachusetts. The buyer was an engineering company in the Boston Area that wanted to expand their presence through an acquisition.
To view our full list of sold businesses, click on Businesses we have sold. You can sort based on industry to see what types of companies we have sold in your sector.
What company do you want to sell in 2021?
Synergy Business Brokers has potential buyers looking to purchase profitable companies in every industry segment that we focus on. In fact, we have 30,000 potential buyers throughout the US and overseas. In addition, we have a 15 step marketing process to maximize your sale price and find the right buyer confidentially.
Synergy Business Brokers has won many awards as a top business broker in the country.
We offer a confidential consultation. We’ll discuss your business, give you an idea of a selling price to see if this is something you want to move forward with. If you do and we feel we are the right business broker for you, we will invest in a comprehensive marketing program with no fee until your company is sold.
Please fill out our online form and get started today.