BizBuySell’s Annual Insight Report- 2019 Small Business Market: Uncertainty Creates Opportunity and Risk
BizBuySell’s Annual Insight Report shows that while small business sales still remain at historically high levels, 2019 transactions took a five percent dip from record-setting 2018 levels. The number of small businesses that changed hands in 2019 dropped slightly compared to last year according to the latest BizBuySell Insight Report, a nationally-recognized economic indicator that aggregates statistics from business-for-sale transactions reported by participating business brokers nationwide. The Insights Report also touches on several compelling demographic trends, including the Baby Boomer’s growing likelihood of selling their businesses as they age and seek retirement, as well as the causes of current market conditions.
In total, 9,746 closed sales were reported by brokers in 2019, a 5.5 percent decrease from the 10,312 deals reported in 2018, which set the BizBuySell record for most transactions. While full-year activity slowed compared to 2018, 4th quarter transactions bounced back to positive growth and it’s important to remember that levels remain historically high.
Still, there are many issues surrounding the market that could cause hesitation when considering a sale, particularly for owners who are having to juggle the dynamic of running a business at the same time of managing through policy changes. In fact, business owner confidence dropped 6 points in 2019 according to BizBuySell’s Annual Confidence Index, largely due to political and economic uncertainty.
Click here for the full report.
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Small Businesses Are Selling for Highest Prices on Record, According to BizBuySell Report
BizBuySell just released their quarterly insight report for Q3 2018 with some interesting data in regards to sale price and business financial success.
Small businesses sold for a median price of $249,000 in the third quarter, up 10.7 percent from the same time last year and the highest amount since BizBuySell started collecting data in 2007. The median asking price grew 7.6 percent to $269,000 which translates to a 93 percent sales-to-ask ratio, up slightly from the 92 percent reported in Q3 2017. The strong sales-to-ask ratio likely means that buyers and sellers are seeing eye-to-eye in terms of value. While owners are getting top dollar for their business, buyers are inheriting businesses with a better financial footing. Primarily fueled by a healthy economy, businesses sold in Q3 had $530,995 median revenue and $116,229 median cash flow. Those financial totals are up 7.4 percent and 2.8 percent respectively year-over-year.
Read the entire article here.
Small Business Listing Metrics
| # of Sales | Cash Flow Multiple | |
| Sacramento | 84 | 2.23 |
| San Francisco | 150 | 2.10 |
| San Jose | 79 | 2.26 |
