The enterprise value specialists at Ceibass have described the current economic situation in the United States as “the epitome of get it done while you can. Make hay.”
According to Kiplinger short-term interest rates are headed down because of expectations that the Federal Reserve will cut the federal funds rate – at either its July 31 or September 18 meeting. The Fed will also cut rates if an economic slowdown threatens to snowball because of trade war shock with China.
“We are in the longest expansion in recorded history, 10 years, 120 months,” said Tom Fochtman, Ceibass CEO. “It’s an election year next year. There are expectations that interest rates move lower, money is cheap. This is not a time for retreat. Invest in your business. Use the money to fix your fleet, invest in buildings, update equipment, modernize your technology, secure top talent, or buy a business.”
Tom went on to say that “now is the time to have your exit plan in process if you are even remotely thinking about selling your business.” Why? “The economy is not letting up, there’s no reason to be conservative,” said Tom. “We are seeing companies aggressively seeking expansion through acquisition. It’s a great time to be a seller. There is a lot of activity. A lot of interest.”
The bottom line? Make hay while the sun is shining. Make good use of this opportunity while it lasts whether you are buying, selling or growing your lawn and landscape business.