The results through the 4th quarter of 2013 are in and according BizBuySell.com the Internet’s largest business-for-sale marketplace, small business transactions grew 49 percent in 2013 compared to 2012. The full-year totals represent the first year of extreme improvement in the business-for-sale industry since levels reached record lows in mid-2009.
In addition to full-year totals, BizBuySell.com reported a strong fourth quarter to end 2013. Total small business transactions increased 38 percent over the fourth quarter of 2012. This comes after 56 percent growth in Q1 of 2013, 62 percent in Q2 and 42 percent in Q3.
Not only are the total number of transactions on the increase, but we are now seeing some stability in the value of the transactions. According to Pratt’s Stats, the premier source for private business transaction details, the value of business transactions continued to improve in 2013. Pratt’s Stats includes up to 88 data points that highlight the financial and transactional details of the business sales, and includes both private and public buyers.
As of the publication date, the Pratt’s Stats database contains 13,883 transactions in which the buyer was a private party. The database includes a total of 20,543 transactions in which a privately held company was sold to either a private or public buyer.
Listed below are various statistics, based on “median” results, excerpted from the Pratt’s Stats report.
Transaction Sales Price as a % of the Net Annual Sales for all transaction sizes increased over 2012 results.
Transaction Sales Price as a multiple of EBITDA came in at the highest level since 2008. The “Construction” industry reported the highest overall multiple of all business segments.
The broad industry categories, ranked by transaction sales price, are as follows:
- Manufacturing
- Construction
- Wholesale trade
- Transportation
- Services
- Retail
The gross profit margins reported by all companies acquired in 2013 were even with 2012.