San Francisco, CA – BizBuySell.com the Internet’s largest business-for-sale marketplace, reported today that small business transactions continued at a strong pace in the first quarter of 2015, growing 6 percent from the first quarter of 2014. A total of 1,830 small businesses were reported sold in Q1, continuing a two-year trend of exceptionally robust activity in the business-for-sale market. The full results are included in BizBuySell.com’s Q1 2015 Insight Report, which aggregates statistics from business-for-sale transactions reported by participating business brokers nationwide.
Recent surveys of buyers, sellers and business brokers attribute the transaction increase to the growth of both supply and demand in the business-for-sale market. Baby Boomers continue to supply the market with quality listings as they reach retirement age and buyers (who now have access to more lending options) are pulling the trigger on their small business ownership plans.
A key reason buyers and sellers are entering the market in larger numbers is the improving health of small businesses in general. Financial indicators remained high in the first quarter of 2015, giving sellers hope that they can earn a high sales price and giving buyers optimism about the future of their potential acquisitions. The median revenue of small businesses sold in Q1 increased by 10% versus the same time last year. Median cash flow being earned on these transactions also increased, hitting the highest numbers reported since BizBuySell.com started tracking this data in 2007.
Lastly, and most importantly, the median sales price achieved on these transactions continued to increase, topping the same period last year by over 14%!
With revenue and profits increasing, sellers receiving higher multiples, and at the same time business transactions continuing to increase, we continue the shift toward a Seller’s market!
Is the time right for you to considering selling your business? Curious to see how you might improve the value of your business to both strategic and financial acquirers? Complete the Sellability Score questionnaire today and we’ll send you a 27-page custom report complete with your score on the eight key drivers of Sellability. Take the test now:
