Episode 83: Valuations Are Frothy. Will They Stay That Way? Why are 10-Year Treasure Rates Increasing? Is Now The Time To Sell Your Business?
Update: 2025-01-12
Description
David and Eric kick off 2025 by discussing the impact of current interest rates on business valuations. They delve into the recent trends, causes, and implications of ‘frothy’ valuations in the middle market, particularly focusing on how private equity investments are altering the market dynamics. The episode also explores the discrepancies in interest rates, the importance of mission preservation during business sales, and the critical elements that distinguish highly valued companies from their peers. They reference the Pepperdine Private Capital Markets study and numerous media articles covering how 10-year treasury rates are going the opposite direction of the Federal Funds Rate.
https://digitalcommons.pepperdine.edu/gsbm_pcm_pcmr
https://seekingalpha.com/news/4393383-us10y-soars-about-100-bps-since-fed-rate-cuts-signaling-a-diverging-inflation-outlook
https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html
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