Research: Sales of small businesses to spike, thanks to tax reform

Written on Feb 28, 2018

New analysis from the International Business Brokers Association (IBBA) suggests small business (SMB) sales will surge in the U.S. this year, driven largely by tax reform.

The research found that nearly three-quarters of surveyed advisors and brokers predict sales of SMBs in the country to increase this year.

Those professionals largely attributed the trend to tax reform and the Small Business Administration’s decision to lower minimum down payments from 25% to 10%.

With more sales of small businesses expected, business advisors are more optimistic than they were a year ago, the report found. Researchers highlighted advisors’ expectations for “greater deal flow, increased business exit opportunities for sellers, opportunities for growth, better closing rates and an improvement in general business conditions” as drivers of that optimism. Further, these professionals have expressed increased optimism for the overall economy.

The survey also found “small but growing” evidence of more sellers enticed by unsolicited offers, with 13% of entrepreneurs selling their small businesses this way.


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