Why sell now?
The United States remains optimistic. For many, personal wealth and economic security have never been higher. For an owner with a decade or more of “sweat equity” invested in a successful company, it’s difficult to imagine an economy not heading in the right direction. More importantly, it’s tempting to believe valuations will continue to rise. For a young gun with years to weather a storm, this is a risk worth taking. For anyone approaching retirement, this requires further analysis.
Slipstream believes the economy is on the verge of a recession. The current business environment reflects unsustainable economic expansion. The economy will cool, the question is timing. We base our concerns on the following unsustainable trends.
a. Interest rates are at an all-time historical low (~100+ yrs).
b. Sustained historical quantitative easing since the 2008 crisis.
c. Increased demand from emerging economies for US produced goods and services benefited demand domestically but are now at risk to trade tariffs.
d. Massive energy cost stimulus versus the prior economic peak (65%+ crude oil discount; 70%+ natural gas discount).
Additionally, according to Bain Surveying, Inc., 47% of middle-market business owners aged 55 and older are interested in selling their businesses within three years. Unfortunately, more than 90% them, have not begun the planning process. If the economy “runs hot” for several more years…delaying your transition is affordable. But what happens if the economy slows and the market is flooded with an entire generation of entrepreneurs attempting to transition at the same time? Obviously, valuations will evaporate. If you’re reading this…you’ve thought about the same.
The Slipstream difference
If it’s time to look beyond the horizon, Slipstream believes we’re uniquely positioned to continue your journey. The search model beats traditional private equity and venture capital simply because we’re invested in long term growth. At Slipstream, I have a proven record of service to our Nation and service to others. I believe success is best achieved by empowering others. That’s what leaders do. It’s all I know. It goes without saying, as an entrepreneur I’ll work hard to build value and wealth for the entire team. I plan to do it with the same honesty, integrity and loyalty I’ve lived for the last 30+ years.
Slipstream is a family... let me be part of yours
This is why I do what I do, I assume its the same for you!