IBBA Reveals Business Owners Value Employees, Fast Exits, and Legacies

 

International Business Brokers Association
Image: ibba.org

Linn Crader, the president of Business Transaction Services, Inc., and Murphy Business Northwest, Inc., relies on his more than 25 years of experience in the M&A industry to assist customers. Active within the professional community, Linn Crader belongs to several organizations, including the International Business Brokers Association (IBBA).

In May 2017, results from the Q1 2017 Market Pulse Report were published. This report was created through the collaboration of the Pepperdine Private Capital Market Project, M&A Source, and the IBBA, the largest nonprofit for business brokerage and M&A professionals. This report compares the conditions for businesses being sold in both lower middle and main street markets. More than 300 business brokers and M&A advisors from 37 states responded to the Q1 2017 survey.

According to the Q1 2017 report, employees are one of the top considerations when business owners look to sell their company. Roughly 70 percent of all respondents stated that taking care of their employees plays a huge role in deciding between potential buyers, and some individuals have seen business owners agree to less money to protect employees’ jobs and workplace culture.

In addition to that, the report found that deal structure was an important factor in the negotiation of transactions for 77 percent of respondents. Negotiations over closing date followed as the next most important factor, along with non-compete contracts or employment contracts for sellers.

The Q1 2017 Market Pulse Report also revealed that business owners place a great deal of value on leaving a legacy once they sell their company and exiting their business quickly.

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