In an economy marked by uncertainty, navigating business growth and planning a strategic exit both require foresight and expertise.

Entrepreneurs aiming to scale are weighing the risks of organic growth versus the opportunities in mergers and acquisitions, while business owners looking to sell are strategizing for maximum returns.

Navigating the purchase of a business in an uncertain economy.

To scale a business in this economy, entrepreneurs must practice patience. Organic growth is always an option, of course, but many of 21st Century Bank’s customers are also successfully navigating mergers (combining two companies) and acquisitions (purchasing another preexisting business) with our tailored, expert advice.

Sellers are valuing their businesses today at rates we saw in 2020-21. However, much has changed since then—wages have increased, there is greater economic uncertainty, customer behavior has changed, and interest rates have risen, as well as the costs of goods and services.

Because of this, sellers may ask for more than you’re willing to pay. Understanding the company’s financial health and performing due diligence to investigate a potential purchase is critical to a successful acquisition.

21st Century Bank serves our community through personalized financial advice, whether you bank through us or not. Our greatest strength is the experience of our team members. For 105-plus years, we’ve helped customers secure funds to pursue their dreams, even when other banks have declined the opportunity.

We welcome you to get in touch with one of 21st Century’s experts early in the M&A process in order to save time, get organized, and prepare to triumphantly secure the funding you’re after.

More advice can be found at 21stcb.com/tcb.

“If you’re part of this [baby boomer] generation and own a business, now is the time to start seriously considering an exit strategy.”

Strategies for selling your business at a price you want.

By 2030, all baby boomers will be 65 or older. If you’re part of this generation and own a business, now is the time to start seriously considering your exit strategy. Want to know when to sell for maximum value? Here are some tips to help you sell high.

Fine-Tune Your Finances. Start by making your business as profitable as possible. Although it may be tough to part with a profitable business, maximizing its value means preparing to exit when your profits are at their peak. Tighten up your business’s budget by reducing personal expenses paid by the business. This might increase your tax burden, but it also enhances your business’s value in the eyes of potential buyers.

Strengthen Your Supervisors. To prepare for a sale, you need to step back from day-to-day operations—and good management can help you do just that. Build a strong leadership team who can run the business—and run it well-— without you. Buyers want to purchase a thriving company, not a business that’s overly dependent on the owner.

Assemble Your Advisors. Selling a business typically takes six to 12 months, but your preparation should really start three to five years ahead of that. Begin by gathering a reliable team of advisors including a coach or exit planner, an M&A advisor/broker, a financial planner, a CPA, and an M&A attorney. With all hands on deck, you can make the very most of this important deal.