So, should you plan to sell your business in the final quarter of 2022? In our humble opinion, unless you are in a unique position in the market, or you have no other option, the answer is no. Yes, there are still a lot of positives to report, and many active buyers remain. However, we are skeptical that the highest level of value will be reached at this time. 

If you wish to grow, deals can be made with strategic acquisitions that will benefit both the Seller and the Buyer, and this is an excellent time to think about if you are in the growth mode. Want to know more about a strategic acquisition? Call us at (864)641-8131 

The most recent trends from forecasters I follow suggest a growth of 0 to 0.5 GDP for 2022 – 2023. We will however know more in the November / December period, after the election and the resolution of the long-term energy debate. We sense at this point that all data and forecasts are laced with political undertones, depending on the source and its affiliation. The majority of the data and information provided have a political component disguised under different explanations that in the past have never been part of the forecast.

It is interesting to know that high valuations are the greatest scope of disappointment for the Buyer and the Seller, here is a comment from Mondaq that addresses this trend.

Looking back on the strongest M&A market in history and the disputes that have been emerging.

2021 was a record year for mergers and acquisitions (M&A). Driven by high valuations and abundant liquidity, the total global value of all deals reached an all-time high of USD$5.9 trillion, 64% higher than they were in 2020. Since then headwinds from geopolitical turmoil, the persistence of an inflationary environment that caught many by surprise and recession fears have slowed M&A activity to pre-pandemic levels last seen in H1 2019.

Despite the slowdown, the effects of the 2021 market frenzy are still being felt through a wave of post-acquisition disputes. These disputes are in fact a continuation of certain trends that have been developing for several years. Here is one of four:

Trend 1: High Valuations, Greater Scope for Disappointment

A period of exceptionally high valuations does not necessarily mean that markets, or individual acquisition targets, are overvalued. However, highly valued deals mean an increased scope for disappointment by parties in transactions. Buyers are disappointed when an acquisition target falls short of the expected returns that had been priced into the bid. Sellers can be disappointed when a significant shortfall against expectations means lower than expected earn-out payments. Disappointment breeds disputes.

To read the entire article go here The Latest Generation Of M&A Disputes: Four Trends - M&A/Private Equity - United States (mondaq.com)