Small Business Transactions up 6 percent over last year
Posted by firstname.lastname@example.org | May 1, 2015
BizBuySell.com has released its First Quarter Insight Report, a nationally-recognized economic indicator tracking the health of the U.S. Small Business Economy. In the first quarter of this year, a total of 1830 small businesses were sold. The total is up six percent from last year and continues a two-year trend of robust activity. A recent survey of buyers, sellers and business brokers conducted by the same organization attributed the transaction increase to the growth of supply and demand in the business-for-sale market. Baby Boomers are feeding the market with quality listings as they reach retirement age.
Financial indicators are also fueling the trend, leading to both seller and buyer optimism: the first quarter median revenue for the small businesses sold was $442,000, an increase of $42,000 over the first quarter of last year. The Insight Report found highest median cash flow ($104,000) in the eight years it tracked median cash flow.
The impressive financial performance has led to the increase in both asking price and sale price. According to Insight Report, the median asking price was $225,000, a large jump from the first quarter last year when the median asking price was $199,000. The median sale price saw a similar increase over last year, the median sales price was $200,000 compared to $175,000 last year.
For more information on BizBuySell Insight report Click here.