Inc. Magazine suggests there is.
Earlier this year, Sotheby’s and Christie’s had record art sales, each selling $1 billion worth of paintings and sculptures over the course of a week. Now art sales are in decline, as demonstrated by Sotheby’s recent struggle to meet its minimum sales level of $375 million during its old master and modernist auctions.
“While the rarefied art world may seem like it’s worlds away from the concerns of your own company, you probably want to pay attention. Not only may the paintings and sculpture you bought now fetch less money, but your own company’s value may soon slide as well.”
Inc. identifies a “tenuous” link between art sales and stock market performance, and suggests that the “hype cycle” that has increased valuations for everything from technology startups to modernist paintings is coming to an end.
Entrepreneurs are warned that this may be a sign take a more sober approach to their businesses, as the “changing winds of the art market may further signal a retrenchment in the economy.”
“The big lesson is that you shouldn’t let over-inflated valuation expectations interfere with your exit plans, which could include a sale or plans to go public.”
Read the article here.