Jacksonville Business Journal
October, 2016
Now is the best time to sell your business
by Derek Gilliam
The economy was sputtering when O’Brothers Irish Pub opened its doors for the first time, but the Riverside staple quickly gained a following.
Revenues climbed, said Drew Cavins, who started the pub in 2008 with his wife and brother after decades of success with the nearby Mossfire Grille.
However, all good things must come to an end.
“It became more and more of a hangout, bar type of thing. Liquor, beer, wine sales went from 40 percent to 70 percent of our business in about five years and the restaurant became less and less of a thing. I was making most of my money when I was asleep, which was weird for me,” he said.
With a strong economy, several years of increasing revenue and a full liquor license, the partners in O’Brothers did what many small business owners eventually decide to do — sell the business.
Cavins isn’t alone. The Business Brokers of Florida put the total number of businesses that changed hands in the state during 2015 at 1,221, a 24.2 percent increase in the number of businesses sold in the state compared to 2013. Perhaps even more importantly, the value of businesses sold shot up 46.5 percent, from $229 million to $429 million.
“There’s more buyers, there’s more healthy businesses available for sale and there’s more financing,” said Anthony Rigney, a business broker with the Florida Business Exchange and president of the regional arm of the Business Brokers of Florida.
A still improving economy has pushed revenues higher, banks are more willing to lend money than in years past and more and more Baby Boomers are nearing retirement. These three factors have produced a possible peak time for small business owners to step aside, with local brokers and business owners capitalizing on the trend.
Economic Cycle
Kimberly Deas, a local franchise owner of Murphy Business Brokers, called the current time period the “absolute best time” to sell your business. She cites a Bank of America Merrill Lynch study released in early October that noted “evidence of an imminent recession” that could occur in the second half of 2017.
“A business is worth the most during a time of prosperity,” Deas said. “The banks are lending, money is flowing, most people are felling confident and sales are up for businesses.”
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