Expert Steve Mariani’s thoughts on how interest rates impact the market.

Like most people, your mind has probably been on inflation and interest rates quite a bit lately. If so, I’m excited to introduce you to Steve Mariani from Diamond Financial. Diamond Financial specializes in working with larger broker transactions throughout the country, and Steve’s 15 years of experience with the company provide a unique perspective on today’s market conditions. Today he’s here to discuss how interest rates impact those looking to buy and sell businesses in today’s market.

What do we need to know about rising interest rates?

Interest rates are going up daily, and most people are concerned about whether or not that will slow buyers down. It will slow them down a little, but if the transaction is for $1.5 million or higher, it may not affect them that much. For example, if our clients are buying a $3 million company, that will provide a level of cash flow that can support a 1%, 2%, or 3% hike.

“If you’re looking to buy or sell a business in this market, don’t change your plan.”

Where do you see interest rates going?

A couple of months ago, there was a bit of a slowdown; interest rate increases, the war in Ukraine, and other factors created a lot of turbulence that caused people to take a step back from the market. Now, those who are focused on buying businesses are coming back to the market, albeit slowly and more methodically. As a result, the transactions occurring are of higher quality.

If you’re looking to buy or sell a business in this market, don’t change your plan—continue to work hard and stay the course. For business owners looking to sell, hold the mindset that your business is yours instead of treating it like it’ll soon belong to someone else. You might have to work a little harder than usual, but I think that’s what it’s going to take from all of us to succeed.

If you have any questions about today’s topic or real estate in general, don’t hesitate to give me a call or send me an email. I’d love to hear from you.