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By Sanjeev Kumar
Founding Attorney

Will 2019 be a strong year for business buyers and sellers?

As the year 2019 churns off to a strong start, those in the business industry may be wondering what this new year will hold for buying or selling a business.  After all, the purchase or sale of a business is often heavily intertwined with economic, technological, and even political factors. Our Austin, Texas business law attorneys discuss some factors to consider in this coming new year if you will be purchasing a new business or selling your existing business.

Banks Are Approving Loans at High Rates

Economic confidence remains high heading into 2019, and this is translating to ease of obtaining business loans.  In 2018, small business loans were approved with low interest rates at far higher levels than in the past. In fact, over half of all loan requests were approved in November of 2018, giving a positive indication for the coming year.

Ease of lending will be beneficial to both buyers and sellers of businesses in the coming years.  For potential business buyers, being able to obtain a low interest loan will make the startup process far easier.  For sellers, ease of lending means a plethora of potential buyers, which may equate to faster sales and higher selling prices.

The Government is Moving Towards Decreased Regulations

The Trump administration has made a move towards decreasing federal regulations, with the aim of pumping more funds into the economy.  As the economy continues to thrive, this will mean more options for business buyers and sellers. A strong economy allows sellers to seek a fair and competitive price for their business, while a thriving economy also puts buyers in the driver’s seat as they will have a wide array of options.  Those companies most affected by the changed stance on government regulation will want to remain keenly watching as new policies are enacted and old regulations done away with.

Technology Influences Sales

Our nation has embraced new technologies with open arms, and businesses today are increasingly reliant on evolving technologies.  Businesses that take advantage of new technologies to influence the way they operate, handle customers, and sell products will be at an advantage in the new year. If you are a seller, evaluate how your company uses technology and where improvements may be made to appeal to buyers.  If you are a buyer, examine your potential business to assess how the company has embraced technology and where you could make changes.

About the Author
Sanjeev Kumar is the founder and principal at the Kumar Law Firm, which provides a wide range of legal services to entrepreneurs and business owners in the area of business & corporate law and intellectual property along with related areas of interest to clients such as business succession planning, wealth preservation through estate planning, and alternate dispute resolution.