All the statistics are pointing up in relation to business transactions in 2014. Bizbuysell.com, the internet’s largest business-for-sale marketplace, reported earlier this month that third quarter small business transactions remained at historically high levels.
Through the 3rd quarter of this year, the total number of closed transactions has increased 20.35% from the same period in 2013. The number of closed business transactions has continued to improve each year since the recession, and is currently on pace to record the highest number of closed transactions reported since Bizbuysell began reporting the information in 2007.
More importantly for Sellers of small businesses, the median sales price also continues to rise, growing 5 percent in the 3rd quarter compared to the same period last year. Much of this increase is directly related to the fact that revenue and cash flow for businesses sold continue to increase – resulting in higher sales prices. Perhaps more telling is that sellers are receiving higher multiples for their businesses – with the average revenue multiple increasing by 6% and the average cash flow multiple increasing by nearly 9%!
With revenue and profits increasing, sellers receiving higher multiples, and at the same time business transactions continuing to increase, all indications are that we are slowly shifting to 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:
