Amid the COVID-19 crisis, the U.S. market for Flooring estimated at $48 Billion in the year 2022, is projected to nearly double to the size of $90.6 Billion by 2026. As reported by the Research & Markets industry report on flooring in May of 2022, "the growing urban populace, rapid urbanization, rise in disposable income of consumers, and industrialization [has] resulted in the flooring global market's positive growth." Notably, the increased focus by consumers on remodeling efforts has offered an added stimulus to the market of flooring. Leading this renaissance is this more permanent shift to remote business practices as consumers are now spending increased time in their households. Despite the supply chain issues interrupting many industries and markets, the uptick in remodeling efforts amongst consumers has kept the flooring market surging.
The flooring industry has proven to be steady year over year, which has translated over to the business resale market. Over the last 40 years, Sunbelt Business Brokers has transitioned dozens and dozens of flooring businesses. While much of our success can be attributed to the highly experienced and knowledgeable business intermediaries stationed in 140+ offices throughout the United States, Sunbelt Franchise Resales (SFR) has partnered with one the industry's largest cooperatives in CCA Global Partners to help educate their members on maximizing value and the business selling process. CCA Global Partners is the parent organization to Carpet One, Flooring America and a handful of other popular retail flooring brands. As a result, this has given us keen insights into how to effectively market this type of business and has allowed us to play an integral role in helping owners achieve their succession goals.
As of the conclusion of Third Quarter 2022, the marketplace remains an advantageous place for business owners to transition their business. Since 2020, the buyer pool for businesses has increased dramatically due to historically low interest rates, high unemployment and low job satisfaction. However, there have been some early indicators signaling a shift in the marketplace. With rapid rates of inflation and interest rates spiking beyond even pre-pandemic levels, the buyer pool is projected to level off as many of the incentives to purchase an existing business disappear. Seller Financing has emerged as an alternative to traditional bank financing and remains an attractive selling point for buyers.
If you are an owner contemplating the sale of your business, it's never been more critical and beneficial to consult with someone who understands the marketplace, the selling process and how to appropriately value and market your business in order to maximize value.
Ready to explore selling your business? Contact us today for a free/no-obligation discussion and complimentary value range analysis!