4 Reasons to Consider Selling Your Business in 2021
Like many business owners, you may have spent more time over the last year focused on keeping your businesses afloat and navigating rapidly changing public health orders, rather than planning your exit strategy. However, a rebounding economy, the prospect for tax hikes, and buyers flush with cash have many business owners thinking about selling. Below are four reasons why you may want to join them and cash in now.
- Buyers are prepared to spend. A growing number of buyers with cash on the sidelines has created significant opportunities for business owners seeking to sell. According to a recent report, the median revenue and cash flow of businesses sold in the first quarter of this year were both up 15% and 7%, respectively. As a result, buyers have been paying premium prices for these businesses, with the median selling price up 30% year-over-year.1
- Competition is expected to grow. While demand among buyers continued to grow throughout the pandemic, supply remained relatively low. This was due, in part, to businesses that were adversely impacted and owners who were waiting to recover before selling. As more businesses reopen and benefit from pent-up consumer demand, more owners are expected to regain business value and enter the market. This is especially true for baby boomers who make up a large majority of business owners preparing to retire and exit their businesses in the years ahead.2
- Capital investments are costly. While the United States has made considerable progress in tamping down the spread of COVID-19, the pandemic will continue to influence how business is conducted in the months and years ahead. Many business owners are taking the opportunity now to make substantial capital investments for ventilation and HVAC system upgrades, expanded office and indoor dining space, and other measures to help head off future business disruptions. However, if you’re thinking about selling now, you may not want to expend that capital.
- Tax hikes may be on the horizon. President Biden ran on a platform that included raising levies on capital gains and ordinary income for taxpayers earning more than $400,000, as well as the federal statutory tax rate for corporations, to help pay for a large infrastructure bill and related proposals in the coming years. Keep in mind, these are only proposals until Congress enacts legislation, which could take months or years, or not happen at all. However, many business owners are considering the potential impact that higher taxes could have on business income or the future sale of a business.
If you would like to learn more about the importance of having an exit strategy in place that considers these and other factors impacting business owners, or want to discuss your unique business situation, call the office to schedule time to talk.
5 Ways Telehealth Will Continue to Benefit Retirees
Medicare and most private insurers expanded coverage for a broad range of telehealth services early in the COVID-19 pandemic to include virtual access to care via phone or web conferencing for office visits, consultations, and more.1While Americans across all age groups quickly adapted to this new way of accessing healthcare services, it was widely embraced by seniors, many of whom were concerned about contact with people outside of their own households during the pandemic.
According to the CDC, telehealth visits during the last week of March 2020 increased by 154% over the same period in 2019.2Additional government data shows that in just one week in April, nearly 1.7 million Medicare beneficiaries received telehealth services, compared with 13,000 in a typical week before the pandemic. In addition, more than 9 million Medicare enrollees received telehealth services during the four-month lockdown, which started in mid-March 2020.3
Below are five ways seniors are benefitting from virtual appointments and why telehealth is likely here to stay:
- Greater access to care: Often, people can “see” a doctor or physician’s assistant in a more timely manner than waiting for an office appointment. This can also help determine if it’s necessary to follow-up with an in-person appointment with their current provider or a specialist.
- Convenience: Telehealth allows people to access care in the comfort and privacy of their own home. Research also indicates that people who take advantage of telehealth services spend less time waiting in doctor’s offices and hospitals and commuting to doctors’ visits.
- Less stress: Many seniors and their caregivers report less stress with virtual visits, especially those with physical mobility issues or transportation challenges.2
- Reduced spread of infection: Less time spent in crowded waiting rooms at medical offices, hospitals, and clinics reduces the risk of exposure to others who may be sick.
- Lower costs: Cost savings from telehealth are largely realized when patients are able to avoid more costly care settings. Research shows that using telehealth to divert patients with non-life-threatening conditions from emergency departments can save more than $1,500 per visit.4
While virtual visits are not expected to fully replace in-person care, in many cases, telehealth can provide greater convenience and confidence along the path to maintaining health and wellness.
This information was written by KRW Creative Concepts, a non-affiliate of the broker-dealer.