Fed Announces Rate Cut for 2026
Paul walks through his perspective on the new rate cut announcement.
Full transcript
Generated from the episode audio and lightly edited for readability.
Good morning. This is Paul Martin. Welcome to another episode of the Martin Rehab M&A advisory. I'm Paul Martin and founder and president of Martin Health Advisors and I'm here again with you today from the airport getting ready to take off and talk to and meet with some physical therapy business owners across the country. I had to come out to you today. We had an announcement just a few days ago that I believe will have an impact on the emerger and acquisition activity as well as selectivity here in 2026.
The Fed made another cut. So we are now another quarter percent down and this is the third cut in 20125 and that's meaningful. What I believe this will signal out to acquirers is certainly that debt will be cheaper and that this could be a good window for them to make acquisitions and partnerships of quality physical therapy businesses. And that's where I talk I'm going to come to you is that if you're looking to partner or sell your company at any time in the future, this window of 2026 could be important.
We have interest rates now that are going to be somewhere in a range of 3 and a half to 3.75%. That's the lowest since the postcoid numbers we saw in 2020 2021. And again, what this will do is it will enable acquirers to borrow money at much cheaper rates and will enable them to have flexibilities in the deals that they're doing. So, if you are a business owner out there and you're looking to potentially sell your business in 2026, it very well could be a window of opportunity for you.
And if you're going to take advantage of that opportunity, we only have a couple weeks left here in 2025. Make sure you are getting prepared so that if you want to take advantage of this window, you are ready. And readiness can work in many assets and facets of your business. Makes you more profitable, makes your financials cleaner, makes you able to borrow much easier. So, there's always a time for preparation. And if you'd like to talk to me about this, you can click below and we can have a conversation because this is a great time of year to consider doing that annual assessment on your business looking back in 2025.
What can you improve? What can you make better for 2026? Which would then enable you to be prepared for this current market. I hope all of you have a great weekend and I look forward to talking to you in the very near future. Thanks for checking in and I will talk to you soon.
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