Industry Expert Warns ObamaCare May Impact Buying and Selling a Small Business

    DUBLIN, CA, August 06, 2013 /24-7PressRelease/ -- Industry expert, Peter Siegel, the Founder & President of BizBen.com released a statement today warning that ObamaCare, once fully implemented, may negatively impact the market for buying and selling businesses.

"Since the Patient Protection and the Affordable Care Act was passed, I've been closely watching to see how its implementation would impact the market," said Siegel. "So far, I can say ObamaCare has introduced a level of uncertainty among business sellers and buyers that I haven't seen throughout my many years in this industry."

Under the new health care law, small businesses will have certain legal obligations when it comes to offering health insurance for their employees. Depending on the company size and number of employees, small businesses that never offered insurance in the past may now be forced to. ObamaCare is also expected to come with new taxes on businesses and families.

Siegel warns, "the new health care law has the potential to cause pricing problems in the small business market. If the costs of offering healthcare to employees starts to climb businesses will have less cash flow and less profit. This means a lower ratio when the business is sold and a lower ratio means a lower asking price. This will result in businesses selling for less than they were worth prior to the new health care law and owners looking to move on will take a hit."

While it may seem like this will create a buyer's market, Siegel says that is not the case. "Not only could circumstances like this affect an owner's decision to sell but also a buyer's decision to acquire. With the costs of the new health care law still unknown we may see buyers hesitate to move forward with a purchase for fear of the how the law will affect the company's bottom line," says Siegel. "We may also see potential buyers steering away from companies that have a large staff."

Siegel anticipates that the true impact of Health Care Reform will not be fully defined until ObamaCare has been implemented and companies have a chance to see how its policies impact their bottom line.

About Peter Siegel, MBA: Siegel is the Founder & Senior Advisor at BizBen.com. Reach him direct at 866-270-6278 to discuss strategies regarding buying, selling, (or financing a purchase of) California businesses.

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