A lot happened in 2016 that affected your business and your customers. A weak mining sector, low oil prices, decreased construction activity, rising unemployment rates, declining housing market, a turbulent US election, and general market uncertainty surrounding the pending carbon tax. This all made a difference to your local economy and the conditions that impact your customers.
2017 is a new year full of opportunity and potential.
In December, RBC reported they anticipate that the Saskatchewan economy will see a very modest recovery in the mining sector that will fuel a slight pick-up in construction spending. The energy sector is expected to turnaround with oil prices strengthening due to increased demand and reduced global supply. The Ag sector is predicting more favourable growing conditions for 2017 which will lead to improved crop quality and increased farm incomes after a difficult 2016 growing season. Things aren’t so rosy for unemployment in the province, with expectations of the unemployment rate continuing to rise in 2017 to 6.5%.
The local economy looks to be stabilizing and it is expected that the province will embark on a gradual recovery over the next two years. But what remains is a lot of uncertainty primarily surrounding the incoming US administration potential policy changes, new Canadian housing market regulations and a carbon price plan. These are very important potential changes that could have a large impact on the success of many Saskatchewan businesses.
Outlook for Selling a Business in 2017
- Buyers will continue to look at opportunities more carefully and not take future results for granted
- Good businesses will continue to sell for favourable multiples as long as they are backed by quality management and a strong future sales potential
- Business value will trend towards cash value of the assets if the business is lacking a solid goodwill proposition. Set yourself apart – build value and prove it to potential buyers
What does this mean for the prospect of selling your business in 2017?
Will a recovery in our local economy help the market valuation of your business?
How can you make the most of an improving economic outlook to successfully sell your business?
We have answers for you. Contact us to confidentially discuss how to optimize your business for sale and attract serious interest from buyers in 2017.