BizBuySell Reports Number of Small Business Sold Transactions Hits Record Levels 1st Half of 2017
BizBuySell.com’s Second Quarter 2017 Insight Report indicates 2017 is on track for a record-breaking year of small business sales as deals close faster. A total of 2,534 closed transactions were reported in the second quarter of 2017, a 31 percent increase from this time last year. This brings the year-to-date total to 4,902 closed transactions. If this pace holds up, 2017 will easily surpass 2016, when BizBuySell reported a then record 3,775 transactions in the first half of the year.
Below are a few highlights from the report:
- Businesses sold in Q2 saw an increase of 11% in median revenue
- For the same quarter, median cash flow increased 10.5%
- Average multiple of cash flow increased 5.1%
- Median asking price for closed deals increased 12.6%
- Sales to asking price remained at a consistent 92%
- Total listings increased 13% year over year
- Restaurants saw the largest increase in activity up 34% in closed transactions
“Our recent conversations with brokers and previous research shows both buyers and sellers are confident in today’s business-for-sale environment,” said Bob House, president of BizBuySell.com and BizQuest.com. “This streak of record-number transactions confirms this sentiment and suggests many are capitalizing on today’s hot market.”
Source: BizBuySell 2017 Q2 Insight Report
Read MoreBizBuySell Reports Q1 2017 Small Business Transactions Up 29 Percent, Financials Reach Record Levels
BizBuySell just released the results for business sales in Q1 of 2017. Per the article – “Though the spike in small business transactions may be partly due to a rush of buyers and sellers looking to close deals around the New Year, a healthy economy, strong small business financials, and access to financing are also enticing more buyers and sellers to the market.”
Below are a few highlights:
- Businesses sold in Q1 grossed a median revenue of $518,159, an 8.4 percent increase from $478,000 in the first quarter of 2016.
- Median cash flow also increased, up 6.6 percent year-over-year to $117,275 from $110,000. These key financial indicators are the highest totals since BizBuySell first started tracking data in 2007.
- The average multiple of cash flow, which remained flat over the past few quarters, increased 1.6 percent from 2.31 to 2.35.
- The median sale price increased nearly eight percent
- Over the past few quarters, the number of small businesses listed for sale has steadily increased. That trend carried over into 2017 as total listings increased 3.8 percent from last year.
- Baby Boomers looking to capitalize on today’s favorable conditions and exit small business ownership for retirement are fueling the market supply.
- Looking into specific industries, the restaurant and retail sectors experienced the greatest growth. The number of closed transactions in the restaurant sector increased 29 percent year-over-year.
- Retail business transactions increased 28 percent, just shy of the growth recorded in the restaurant sector.
Northern California Business Sales Stats Q1 2017
|
Market |
Asking Price to Cash Flow (avg) |
| Contra Costa-Alameda-Solano, CA | 3.00 |
| Sacramento–Arden-Arcade–Roseville, CA | 2.81 |
| San Francisco-Oakland-Fremont, CA | 2.94 |
| San Jose-Sunnyvale-Santa Clara, CA | 3.08 |
Source: BizBuySell
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