Anthony Pumphrey, CFA, ASA, Managing Director was recently quoted in the NJ BIZ article, “Entrepreneurs seeking to cash out turn to business brokers.” The article notes that in today’s business environment, entrepreneurs are seeking guidance from third-party brokers and valuation experts when navigating complex market dynamics and maximizing opportunities for the end stages of their businesses.

Pumphrey offered insights into the intricacies of such valuations and strategic decision-making while underscoring the importance of comprehensive due diligence in determining fair and competitive valuations for businesses.

Since 2022, Pumphrey has seen a slight pullback in deal pricing, thanks to higher interest rates – which makes capital more expensive – and reduced multiples of EBITDA, a commonly used performance measure. “We’re also seeing more interest in non-cyclical industries, like accounting and advisory, and health care companies,” he said. “There’s been a slight rotation away from cyclical businesses like manufacturing and retail.”

For entrepreneurs exploring strategic options or contemplating a business sale, guidance from valuation experts like those at VRC offers invaluable insights and expertise to maximize opportunities and achieve optimal outcomes.