AMELIA ISLAND, Fla. The
time is ripe for borrowing money and making acquisitions,
according to Alan Beaulieu, president of ITR Economics and
chief economist of the Copper and Brass Fabricators
"Before the end of the year
borrow money. Both as a corporation and personally, go borrow
some money. This is the time for acquisitions and mergers," he
said April 12 at the Copper and Brass Servicenter
Associations annual conference in Amelia Island, Fla.
Banks are willing to lend and
borrowers should take advantage of the current low interest
rates, Beaulieu said.
"Banks are looking for good
borrowers. This is the lowest interest rate youre going
to see for a long, long time," he said. "The next downturn will
be in 2019. Business is going to go down again. ... This is a
great time to buy."
The Dodd-Frank Wall Street
Reform and Consumer Protection Act is going to make it harder
for people to borrow money from 2014 onward, according to
Beaulieu. Dodd-Frank will constrict markets and drive interest
rates up, he said.
"Do you want to borrow at
todays rate of 3.5 percent or at 7.5 percent in the
future?" he asked.
Meanwhile, if you are looking to
sell your business, you should look to do it before 2019,
Beaulieu said. In his opinion, the best time for selling will
be in 2017 and 2018.
"If you sell in 2018 you sell it for cash ... and you sell
it to someone you dont like," he said, adding that if
buying now isnt an option, then 2019 will be another
"great buying opportunity."