From the Trenches - Interview With North Carolina Business Broker Don Emmett
Don Emmett
Current market perspective from the trenches of the business acquisition & sale industry
Sit-Down Interview With Business Broker Don Emmett
What are your thoughts on where business acquisition & sale market activity is heading over the next 3-6 months?
I am seeing and I think we will continue to see, more activity, sell-side, and buy-side. pent up supply and demand for good businesses. Along with the Boomer equation (10k hitting 65 yrs old every day) In both main street and lower middle market
What do you see as the most significant SELF-IMPOSED threats out there that could hurt the market for business acquisition & sale and small business activity in general?
Did self impose, on me? Or self-imposed from a buyer or seller? I think procrastination is the main threat to all of the above
What do you see as the top three things the government needs to do to support the main street business acquisition and sale opportunities for small business owners through the remainder of this year?
Support & fund SBA
Do blanket forgiveness for PPP under $150k
May need another round of stimulus b4 this is over
What do you see as the top three reasons to BUY a business in 2020?
The boomer equation
The unpredictability of "corp" employment/career tracks
Control your destiny
What are some of the questions a business owner should ask when choosing an advisor to help buy a business or work on exit planning to help navigate through this challenging stretch?
Business owners should ask advisors the following questions:
How long have you been selling businesses?
Have you ever owned a business?
What is your closing ratio of businesses listed?
Do you co-broker?
Are you a member of IBBA/CVBBA?
What certifications have you earned?
Experience in transactions
Experience in previous careers.
References/success ratio
How would you rate the current political environment related to small business growth, business acquisition & sales?
3/5
What are your thoughts on transaction terms for buyers & sellers in the current market?
Of course, as they say, "It depends" If biz has not been affected by COVID, no discount. Some effect? May see the use of different structures such as Earn Outs Seller finance with forgiveness etc.
In the Raleigh/Durham/Chapel Hill Triangle, we are still seeing and forecasting strong growth, which likely to continue if not strengthen as companies/ employers and talent seek less dense population centers. The region is already attractive because of the lower cost of living and fairly recession-resistant economy due to the number of major Universities and prevalence of Pharma and tech.
Thoughts on business valuations in today's market?
Again, " it depends" for the most part we are using the past to predict the future the "present" may or may not have much impact.
