Not much has changed since August, and most economic predictions are layered with excuses surrounding the stagnant market. As of now, it looks like a strong labor market has the power to withstand inflation. We are expecting that 12 months of minimal growth will be the result, with a recovery in late 2023. During this period, the average US citizen can expect financial hardships, especially if gas prices rise again when the strategic reserve is empty. 

It is my personal opinion that the solution could revolve around an energy strategy with a focus on a targeted transfer to more emission friendly products. As we are currently seeing with the situation in Germany, their strategy has been driven by panic. They are considering the continuation of Nuclear energy programs as well as reopening Coal Plants that were previously shut down. This becomes increasingly important if the Nord Stream 1 and Nord Stream 2 natural gas pipelines are closed off.

So, while the US will avert the recession, the sanctions imposed in this time may well have a greater negative impact in Europe than the actual target, and in that scenario, we may see a negative global impacts involving supply chain interruptions of key chemical, pharmaceutical, and agricultural products. (See Chart Below: Source Northern Trust)

With the current market, business owners attempting to make an exit may have to wait a while to find a buyer with pockets full of cash. Even if they find a buyer that has the capital to make a deal, their financial status may change over the course of a long negotiation process. To not pursue potential buyers is almost like firing your sales team and waiting for an opportunity to show up at your front door. 

Investing in good salespeople typically increases sales, so investing in a Business Broker or Business Intermediary (paid on commission) will not only increase your chances of finding qualified buyers, but will also lighten the load of the negotiation process so that you can remain focused on running your business.

A good business broker / intermediary will likely not have a qualified buyer for you immediately, as they first needs to learn about your Business, value it,  and position it in the best possible light for the market. That process includes gathering a full understanding of your operation, as well as vetting for potential red flags. 

As far as the marketing process goes, a confidential market campaign will start to attract as many buyers as possible, all confidential, utilizing the internet, relative internal databases and market research to find and contact potential strategic buyers. 

This is where you will see the true benefits of hiring a Business Broker / Intermediary. They will efficiently screen and present qualified potential Buyers, ensuring that you are only speaking with legit candidates! These potential buyers will be financially screened and interviewed about what they are looking for, as not to waste the Seller's time and emotional effort. Once you enter the negotiation phase, a good business broker will make sure to follow protocol and provide a step-by-step process that recognizes potential roadblocks early in the negotiation process. Once a Business Broker has  entered the  “Due Diligence” phase, it is there goal to make finalizing the transaction as seamlessly as possible. Learn more about what CHV Group can offer here!

As we enter the final Quarter of 2022,  with uncertainties in the economy, it is essential that business owners prepare for what is to come in 2023.  In this instance, scenario planning is potentially the most important. At CHV Group, we are sensitive to the economy, students of global patterns, and would be glad to assist with details involving business planning for 2023.