If you are hoping to maximize your profit and capitalize on the opportunity to sell your alarm company, timing the sale appropriately is imperative. You want to make sure your company is sold for top dollar, and keeping an eye on market and industry trends is key.
Considering when to sell your alarm company? Wondering if now is a good time to sell?
The answer is YES.
Why Now Is a Good Time To Sell Your Alarm Business
Now is an ideal time to sell your security alarm company – in fact, it’s the best time to sell in many years. Here are a few reasons why:
1. It’s Currently a Seller’s Market
At the present time, there are more buyers in the market for security alarm companies than sellers. This creates an ideal situation for sellers as it increases competition among buyers, driving up the prices they are willing to pay to procure a company. This is a favorable situation for those hoping to sell their alarm companies. If you’re hoping to sell your alarm company quickly, for top dollar and on the best possible terms, now is the time!
2. The Internet of Things Has Taken Hold
The advent of the Internet of Things revolution has made now the ideal time to sell your traditional alarm company. Competition from telephone and cable companies has made the security alarm market increasingly saturated. The increased popularity of DIY security systems has limited growth opportunities for traditional security alarm companies. Consumer demand for home automation and remote monitoring technologies has forced many traditional alarm companies to invest in extensive upgrades in order to remain viable competitors. For companies that are unsure if they’ll see a return on the investment they make to keep up with the Internet of Things, the time to sell is now.
3. The Capital Gains Tax Rate Has Improved
While a few years ago, the capital gains tax rate was nearly 30%, the rate has decreased significantly in recent years, hovering around 20%. This adjustment has greatly improved selling conditions, as alarm company sales will be taxed at a significantly lower rate than in years past. This leaves more money in the pockets of sellers, and makes now an even more ideal time to put your alarm company on the market – another strong indication that sellers should act now!
4. Corporate Tax on C Corporations Has Been Reduced
This year, the corporate tax on C corporations is expected to be reduced from 35% to 21%. This reduction is highly beneficial and is a key factor that makes now an especially good time to sell.
5. Interest Rates are Currently Low
Right now, interest rates are low, but they are expected to rise over the course of the coming year. This will affect the value of the capital that buyers need to make an offer on your company. As interest rates increase, buyers will have to adjust – likely lowering their offers to offset the additional cost of the monies they need to put the deal together. If you want to sell your company to a qualified buyer for top dollar, now is the time to do so – before interest rates rise!
Sell Your Alarm Company Now!
Don’t miss out on the current seller’s market. Initiate the process of selling your alarm company today! Give Rory Russell at AFS a call at (800) 354-3863 (Rory’s personal cell) for a no obligation business valuation.
As an experienced alarm company broker with decades of industry experience, Rory can help you determine what your alarm company is worth, find interested buyers, negotiate the best price and best terms for the sale of your company and facilitate a quick, hassle-free transaction. If you’re hoping to make the most of the sale of your alarm company during these ideal market conditions, contact AFS today!
Wondering if you’re truly ready to sell your alarm business? Now may be a good time to sell from an industry perspective but you’re not so sure you’re ready to let go of the reins on a personal level then moving forward with a sale might not be in your best interest. Feeling like you’re on the fence? Here are 8 questions to help you determine whether or not you’re ready to sell.